Is it legal for GMAC to transfer mortgage loans?

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Is it legal for GMAC to transfer mortgage loans?

I had a mortgage loan with GMAC and they transferred the loan without prior notice to me. Should I be concerned?

Asked on October 26, 2010 under Real Estate Law, Georgia

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Generally, the holder of a  loan is not required to provide notice of transferring or assigning a loan unless the loan documents specifically require it to. Don't worry though; the transferee (the company taking the loan) can only get those rights which GMAC had to transfer--i.e. GMAC can't give it anything it did not itself have. That means that the transferee will hold the loan and be paid by you under the exact same terms that GMAC was: same principal, same interest, same payment date, same payments, etc. Neither party to a contract--and a loan is essentially a contract--can unilaterally alter it without the approval/agreement of the other party, so the transferee cannot change the terms on you.


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