Legal Question in Real Estate Law in Arizona
Can our mortgage company negate a signed contract?
We signed a loan modification contract in February '09. we have made our pymts. on time, March through July. Now our mortgage company says they are negating this contract and going to the Obama plan. Can they do this? We have received no prior indication or notice.
2 Answers from Attorneys
Re: Can our mortgage company negate a signed contract?
You should have an attorney review your modification contract to determine what the lender can do.
Re: Can our mortgage company negate a signed contract?
You must distinguish between the lender of the mortgage loan and the mortgage broker who may have worked with you to modify the loan. Once you have modified the loan and signed the documents, the lender cannot just decide to change the loan without your consent and approval, and they would have to be offering you a better deal. The lender cannot unilaterally "negate the contract."
On the other hand, if you are being told this new modification is required by a mortgage broker, then it would appear to be wrongful and you should consult with counsel, an attorney, and find out exactly what is going on.
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