Does the new mortgage company have to honor the modification to my loan? 1 Answers as of August 18, 2011My mortgage was modified, then sold to a new company, does the new company have to honor the modification? I was on a trial plan to avoid foreclosure for 6 months, loan was permanently modified, then sold to another lender.
The Law Offices of Mark Wm. Hofgard, Esq. | Mark Hofgard
YES the new servicer or lender must honor any permanent modification of the loan. The new lender and servicer take the mortgage subject to the rights and responsibilities of the assigning party, which is the lender or servicer that entered into the modification agreement.
Answer Applies to: Colorado