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When a company sell a mortgage loan to another company, does the new company has the right to create a whole new contract with the homeowner?

Posted on: 04th Nov, 2010 08:39 am
If a lending institution sell my loan to another company, during the modification process, which include 6 months of paying on time, can the new company has the right to create a new modification contract, even if I already sign a contract with the first company?
Hi joecruz!

Welcome to forums!

In case of a loan modification, the new company can create a new contract with the borrower. It will depend upon the new company as to what type of rates and terms he will give you.

Feel free to ask if you've further queries.

Sussane
Posted on: 04th Nov, 2010 11:50 pm
When a loan is transferred to another servicing company all terms of the existing terms remain the same. IF you are applying for a loan modification with the new servicer than if you are approved your terms then would be modified to the new agreement. But just changing servicing companies WILL NOT change the terms of your loan.
Posted on: 12th Nov, 2010 06:54 am
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