Do I have to make my mortgage payments if my loan has been sold to a third party?

UPDATED: Dec 4, 2011

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Do I have to make my mortgage payments if my loan has been sold to a third party?

My home mortgage that was Fannie Mae secured, serviced by bank was recently sold to a financial company. The company is a debt collection agency but I have never been late or had any problems in the past with my loan. Are they legally able to collect my mortgage payments? I mean, when I signed my mortgage papers it was between the mortgage company and me at that time. Are they the real party of interest? Are they the person entitled to enforce the note? Am I lost in a gray area? I’m not sure if I should pay them if I don’t have to.

Asked on December 4, 2011 under Real Estate Law, Arizona


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

If your loan that your property has been secured by has been sold to a third party, you are obligated to continue making payments on it. The selling of loans on the secondary market is common where the entity that initially made the loan retains the servicing rights to it.

To make sure that your interests are protected concerning the loan that you are writing about, make sure you receive a recorded assignment of the ownership of the loan secured by your property. Further questions that you may have should be submitted to a real estate attorney.

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 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.

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