The note generally gets sold to an investor. COnforming loans get sold to Fannie and Freddie and Non-conforming loans get sold on the open market. Most of the time, the lender who originated the loan doesnt even hold the note, they only service the loan on behalf of the investor. Technically you owe someone else the money. Loans that are not sold to the quasi government institutions like Fannie Mae are packaged into a Security instruments and sold on the open market to large investors. Some are held or shelved by the original mortgage company, usually the banks that do lending hold at least some of their loans. Either way the entire package of loans is an asset almost as liquid as cash and can be bought and sold many different times without the customer who borrowed the money even knowing. You are correct, just thought I would elaborate. Its late so please excuse the spelling.

What happens to the loan when the mortgage co disappears? Last year the co sent me a letter wanting to settle at discount to the original, I could not do it at that time. They told me to continue with the payments at a P.O.box number. This months payment was sent and returned as not deliverable and no forwarding address. What should I or can I do?