Does a mortgage company need to abide by the original mortgage agreement when it buys another mortgage company out?

I have a mortgage and the original mortgage company allowed me to modify the interest rate for $1,000. The new company will not do this? Don’t they have to have the same guidelines as the original mortgage documents.

Asked on March 21, 2012 under Real Estate Law, Georgia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

What you are saying is that your original mortgage was sold to a new lender, correct?  This is a very common thing.  But fear not: nothing from your original mortgage terms can change when your mortgage company sells or transfers your mortgage except who you write your checks out to each month. So the terms of the contract remain in full force and effect.  I would seek help from an attorney in your area.  Good luck.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.