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Saw a headline today: Bank of America to lay of 10,000.

Got me thinking: We have a fixed rate mortgage with BoA. If they go out of business and another Bank buys their mortgages, they can't renegotiate the contract and raise our rates, correct? Probably a silly question, but researching anything to do with mortgage law online is like trying to..well I can't think of a good analogy but there is a lot of junk out there.

Fox says 3,500 this quarter with possibly more to follow later as they begin restructuring.

You have a legally binding contract, your rates won't change.

USA1 wrote:You have a legally binding contract, your rates won't change.

sweet. Thats what I was thinking, but confirmation is nice.

74novaman wrote:

USA1 wrote:You have a legally binding contract, your rates won't change.

sweet. Thats what I was thinking, but confirmation is nice.

My mortgage and car notes have been sold and bought more times than I can remember over the years, it happens everyday.

As long as you don't have an ARM (adjustable rate mortgage), then you're good to go.

USA1 wrote: As long as you don't have an ARM (adjustable rate mortgage), then you're good to go.

We've been through Dave Ramseys Financial Peace classes, so we knew to stay FAR away from an ARM.

We re-fi'd a few weeks ago.
Our note was sold TWICE before we made the second payment.
If it gets sold again, I'm going to send them an invoice for having to change my repeating online payment again.

The contract you signed with the original lender must be honored by anyone buying your note.

the problem is now we are all findiong out MERS holds the note and someone else holds the loan.
if you havent read up on this google is full of info.

74novaman wrote:

USA1 wrote: As long as you don't have an ARM (adjustable rate mortgage), then you're good to go.

We've been through Dave Ramseys Financial Peace classes, so we knew to stay FAR away from an ARM.

Dave Ramsey for President! What a great person. I wish his course could be part of high school graduation requirements.

My wife and I have had at least 3 different banks since we've been married and we haven't changed once. They changed without even asking us.

fulano wrote:

74novaman wrote:

USA1 wrote: As long as you don't have an ARM (adjustable rate mortgage), then you're good to go.

We've been through Dave Ramseys Financial Peace classes, so we knew to stay FAR away from an ARM.

Dave Ramsey for President! What a great person. I wish his course could be part of high school graduation requirements.

Yep! We loved the class so much we helped teach it the next time it was offered.

I absolutely agree on requiring it in high school, though I'd add one more: You can't hold public office unless you've passed his course.

74novaman wrote:

fulano wrote:

74novaman wrote:

USA1 wrote: As long as you don't have an ARM (adjustable rate mortgage), then you're good to go.

We've been through Dave Ramseys Financial Peace classes, so we knew to stay FAR away from an ARM.

Dave Ramsey for President! What a great person. I wish his course could be part of high school graduation requirements.

Yep! We loved the class so much we helped teach it the next time it was offered.

I absolutely agree on requiring it in high school, though I'd add one more: You can't hold public office unless you've passed his course.

I'd second that too.

The year I graduated from college ('69) I had 3 hrs of free electives I'd saved. I burned them on a "Personal Finance" course. It saved our financial life. It was very similar to FPU. I was already married with the 1st one on the way. My wife and I (same one I have now) set our course and stayed debt free except for house and paid that off by the time we were 35....we were FREEEEEEEEEEEE. We drove lots of "beaters" along the way and ate lots of beans and rice, rice and beans.

I couldn't say enough good about Dave. A real sincere, compassionate, and natural born teacher. I saw him on CNN a couple of weeks ago and it was like a breath of fresh air had blown into the studio; seldom happens on cable.

Real freedom is freedom from compound interest.

fulano wrote: Real freedom is freedom from compound interest.

Unless you're on the receiving end! How many people here remember the days of 10 and 15% interest, compounded daily?

AEA wrote:Fox says 3,500 this quarter with possibly more to follow later as they begin restructuring.

I work for Bank of America and it is pretty frightening right now. I was part of the first cut of 2500, but fortunately I was in the middle of an internal transfer so I was not impacted per se. It ain't no fun to see the news when big numbers are announced for layoffs. My understanding is the 3500 have already been told, so another bullet dodged...for now.

74novaman wrote:

USA1 wrote: As long as you don't have an ARM (adjustable rate mortgage), then you're good to go.

We've been through Dave Ramseys Financial Peace classes, so we knew to stay FAR away from an ARM.

Funny, I took an ARM during a peak interest rate period in 1985, started way low and automatically adjusted on a quarterly basis until it caught up with whatever the current rate was, and then adjusted with the rate. Shortly after we took the mortgage, rates started to drop, and about the time the rates met, I called the lender and offered to lock in fixed where we were at the time, they agreed, but wanted to charge me a bunch of fees. I told them that I was doing them a favor and they should do it for free, and the person thought I was being funny.

Every quarter after that, as the rate continued to drop, I called them and asked if they were happy now, but did not make the same offer again. At one point they sent me a letter, standard advertising disguised as personal with a signature of a person who really doesn't exist, offering to do a re-fi at the new low rate, with minimal fees. I called the person whose signature it was sent over, and of course was unable to talk to them, but left a message that I was happy with the rate I was going to get when the rates dropped again, and I would continue as I was, but any calls back to me should be ONLY from that person. Never got a call back, and my rate dipped well below the original rate.

One of the few times I have ever gambled on financing, and one of the few times I have ever heard of an ARM working in the favor of the lendee.