Does my mortgage modification control future banks or servicing companies if my mortgage changes hands or is sold or assigned?
The simple answer is YES. New holders or servicers are legally bound by the terms and conditions of a properly modified permanent modification. A permanent loan mortgage modification is a legally binding new mortgage with terms that control and override the original mortgage. These terms will always obligate any future holders or servicers of your mortgage. Be careful about your payments when your mortgage changes banks.
Many transfers result in payment processing problems between old lenders and replacement lenders. Payments can be misapplied, returned, or late processed, causing improper mortgage defaults, late charges and credit reporting problems. Problems with escrow payments, insurance payments, and proper allocations to principal and interest can occur each time a mortgage changes hands.