When you finance your rental properties with conventional mortgages your loan term may range anywhere from 10 to 30 years. You may not keep the property that long or you might even retire an existing note and replace it with another. Yet until either event happens you’ll be sending your mortgageloan servicers payments each month to your lender until you no longer own the property.

When you refinance an investment property, most know that you don’t have to use the same lender you used the first time around. You have the ability to get rid of your current lender and replace with a new one by refinancing the current mortgage. Did you also know lenders can get rid of you and send you to another lender and they don’t have to ask for your permission?

It’s likely that your loan is a conventional one, a loan type that can be found at any mortgage company. But there is a difference between your lender that owns your loan and the one you may be sending your monthly payments to. Many times they’re not one in the same. The entity in which you send your payments to is the company that “services” your note. The servicing company is paid a fee to manage the monthly payments and apply them to your loan balance. When you’re alerted that your loan has been sold you will also be given who your new servicer will be.

For instance, you may have initially received your mortgage from your bank down the street. You soon learn that your loan has been sold to another lender. Your loan may be sold but the servicing lender may stay the same. Or the lender keeps the loan but the servicer sold it to another lender. Millions of loans are sold to Fannie Mae and Freddie Mac each year but borrowers don’t send their mortgage payments to them, they send them to the servicer who is usually a lender as well but doesn’t have to be.