Understanding loan modifications

I applied and was approved for a loan modification, and now I’ve been told my mortgage loan was sold. What does this mean?

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It’s possible for your lender to sell your loan to an investor even when you’re in the middle of applying for a loan modification or after you’ve been approved, but the details aren’t finalized.

The good news is that mortgage lenders should have policies and procedures in place to ensure that the documentation for any loans with approved modification plans are transferred. Federal mortgage servicing rules provide guidelines for the transfer of documents from one lender to the next.

If you are facing foreclosure, you should speak to an attorney as soon as possible. An attorney can help you by taking the necessary steps to ensure that the new lender honors the terms of the modification previously approved by the old mortgage lender.

The Ark Mortgage Assistance Program can help! Call 1-800-603-3525 for more information. There’s no obligation. 

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I applied and was approved for a loan modification, and now I’ve been told my mortgage loan was sold. What does this mean?
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