My current mortgage was sold to another lender. new mortgage holder can change the payment terms?

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Note the condition of the loan that I can make a partial payment in advance without penalty. States mortgage holders do not accept this New policy, and its software did not recognize partial advance. They keep changing certain payments for 10 days before the credit. Ready was founded in NC, then sold to Bank NY? Is this legal?

  1. Reply
    Mark C
    April 30, 2011 at 12:30 am

    The new bank has to adhere to the terms of the note, check with the state attny general to enforce the point.

  2. Reply
    April 30, 2011 at 12:39 am

    Anyone who buys your loan has to stick to the terms of the original loan contract. Both parties (you and them) have to agree to modify the terms. They can’t just modify the terms on their own.

  3. Reply
    April 30, 2011 at 12:41 am

    They must adhere to the same terms as the original note. The issue of how and when they apply the additional principal payment is a gray area; I would suspect that their practice complies with all laws or they would have been in trouble way before now.

    The partial prepayment part of your note applies more to the ability of you to pay more ahead of time to get your LTV down so mortgage insurance can be cancelled. It may be that you have a prepayment penalty clause in your contract, but they are waiving it in the case where you want to reduce it enough to get rid of the MI premium. It would only kick in if you paid the loan off by refinancing (this is common) and generally doesn’t apply if it is paid off early due to sale of the property.

  4. Reply
    April 30, 2011 at 1:22 am

    Unless you signed something agreeing to a modification of the loan terms, your new lender cannot alter the terms of the contract. You may want to remind them of this during your next conversation. Several lenders have gotten themselves in the sites of the regulatory agencies for just this sort of thing.

  5. Reply
    Janet P
    April 30, 2011 at 2:17 am

    Send them a copy of the contract.

    Plan on always taking a long time to process, they will not reprogram the computer.

    I have never heard of a lona where you can just pay what you feel like paying each month.

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