I defaulted on home equity loan, a financial crisis, applied for loan modification, they went out of business, transferred my loan, can I refinance?

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I defaulted on home equity loan, a financial crisis, applied for loan modification, they went out of business, transferred my loan, can I refinance?

They want all late fees as if I was them the entire time. I am a new client to them and should start with what I left off with not including late fees. I was not told about this company and they expect me to make a good faith payment to consider a loan modification. Do I pay them?

Asked on May 28, 2009 under Real Estate Law, Virginia

Answers:

J.V., Member, New Jersey Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

companies consolidate or change ownership all the time. Although a client may be new to a company due to their contract being purchased from another company the obligations remain the same.

You can call and try to talk to someone explain the situation see if they can help lower the fees but just because a loan is taken over by another company it is not as if it is a new loan it is simply a new creditor taking over an original loan

If they are asking for you to show them you will be a good customer you can always contact a local attorney who handles this type of matter and ask for advice but mine is make the payment as long as the charges are valid and simply begin working with the new company


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