The new Bank needs to honor your Mortgage Modification.
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.
What Happens to My Trial Modification if My Mortgage Changes Hands?
Trial Mortgage Modifications from one Bank or Lender does not bind a subsequent Bank or Lender. This problem occurs when homeowners have a temporary or trial Modification with one Lender, who sells or assigns the loan during the trial period and refuses to honor a prior Lender’s trial Modification. With the slowness of the Mortgage Modification process and the reality of continuing mortgage assignments and transfers without any borrower’s consent or involvement, trial Modifications can be broken with a transfer during the trial Modification period. The results can be a disaster for the homeowner, who has no control or right to enforce a trial Modification against the new Lender.
Contact Specialized Mortgage Modification Attorneys
The best protection for your home is the prompt involvement of an experienced and specialized Connecticut Foreclosure attorney. At the Law Offices of Neil Crane, we have been saving homes all across Connecticut since 1983. Call us at 203-230-2233 or complete our online contact form to explore your options with our team of Mortgage Modification attorneys. Our offices are in Hamden, Connecticut; New Haven, Connecticut; Waterbury, Connecticut; Rocky Hill, Connecticut; Ridgefield, Connecticut; and Bridgeport, Connecticut.