Once you get your notification, you should immediately contact your old loan company and verify that they have indeed sold you loan off to another company. Due to rapid increase in identity theft scams all over country, you should always call and verify any type of notice from a company that you do not recognize. Contact your old mortgage company ask them to verify that they have sold loan, name of company that bought your loan and their contact information. Then you can verify this information against letter that you have received.

It is not uncommon for loan to be sold more than once. A large portion of all consumer mortgages are assigned to Fannie Mae, Ginnie Mae or Freddie Mac.

However, if you start getting to a point where amount of your first mortgage and your home equity loan are more than current value of your property, you won’t be able to deduct all of your interest payments. This means that if you get a home equity loan using one of those 125 percent LTV programs, you can lose big time.

You will now owe more than your home is worth; have no ability to get another home equity loan or home equity line of credit until you pay down excess amount and start building up new equity, and interest payment on excess amount is not eligible for any tax deductions.

If you are in this position, try to pay down debt as quickly as possible. You don’t want to lose out on any tax deductions, but you also don’t want to lose financial cushion against emergencies and high interest debt that can get form a home equity loan or home equity line of credit.