If you are up to date and currently making payments on your mortgage, you may be surprised to learn one day that your lender has sold your mortgage to another financial institution. Mortgages are very important to a homeowner, and the idea that another company is stepping in to take it over can be cause for concern. Although it is common for lenders to sell mortgages, problems can still arise that can disrupt your payments and cause undue stress.
The Mortgage was sold during the Modification and the Transfer Is Creating Problems, What Should I Do?
Lenders are allowed to sell your mortgage, but federal law prohibits them from altering the terms of your mortgage, such as the monthly payment amount or interest rates. Your new lender is also required to honor any approved loan modifications. In other words, the sale should not affect you in any way other than where you send your payments.
It is important to review your first mortgage statement from your new lender very carefully. If anything does not seem right, such as an incorrect balance or an unfamiliar new fee, or if your approved loan modification is not being honored, it is a good idea to get a copy of your credit report to see how your modification is being reported by the new lender. If the new lender refuses to honor your modification, contact a New Jersey consumer defense attorney as soon as possible.
Did you know that according to the Federal Trade Commission, you are entitled to a FREE credit report every 12 months from each of the three nationwide credit reporting agencies. Click here to download an Annual Credit Report Request Form.
Why is the Foreclosure Moving Forward if I have a Modification?
If you are being making payments on a modification or if your modification application is being reviewed, the lender is not permitted to file a Foreclosure Complaint, Apply for Final Judgment or conduct a Sheriff Sale. If a lender takes action to pursue the foreclosure while you are in the modification process, it is called “Dual Tracking” and it is prohibited by federal law, 12 C.F.R. § 1024.41.
Contact Us Today
At the law offices of Ira J. Metrick, we have experience in defending New Jersey homeowners in all manner of mortgage issues. Contact us today if you are facing any difficulties related to your mortgage being sold to a new lender.