What is the law regarding a change to a mortgage modification?

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What is the law regarding a change to a mortgage modification?

I had my mortgage loan remodified. Interest rate on paperwork we signed was 3.5%. I have made 2 payments since then and yesterday I received a letter stating that there was a mistake made and the interest rate is higher. By law, do I have to go by the higher rate?

Asked on August 7, 2012 under Real Estate Law, Virginia

Answers:

M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

Please take the documents to an attorney to review as soon as possible.  A modification just means that you are sconsenting to a change in your note and mortgage lowering your interest rate.  It creates a whole new contract and it appears here that you signed off on what you thought was agreed to. Your contract will be binding absent other factors not included here.  Get help.  Now.  Good luck.


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