Can a company buy and service your home loan if they are not licensed in your state and unable to help you with anything?

Our mortgage loan was sold and the new lender  is not licensed in my state. My wife and I qualify for president Obamas HARP program but the lender is unable to help us because they are unlicensed.

Asked on March 5, 2012 under Real Estate Law, New Jersey


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

Different states in this country have different laws as to whether an entity can do business in a given state. Typically, the secretary of state for each state requires a business entity to be licensed to do business in a given state. Whether or not the new lender is not licensed to do business in your state is not the issue that I see in that it simply acquired the loan you have, it did not make it. As such, it was not doing business in your state.

I suggest that you consult with an attorney experienced in loan modifications to assist you in the matter you are writing about.

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