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P. Simmons
P. Simmons, Lawyer
Category: Real Estate Law
Satisfied Customers: 38490
Experience:  12+ yrs. of experience including real estate law.
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I have a mortgage with a lender that I am not comfortable

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Good morning. My name is***** have a mortgage with a lender that I am not comfortable with. Since 2015 I have been trying to move my mortgage over to an escrow account knowing that I was going to retire and it would be easier to have my taxes and insurance included with my mortgage. The previous financial company that I was with sold my mortgage to the financial institution I am with now. They set up my mortgage that will balloon in I believe 2023 or 2025. I was not aware of this until I was told by another lender that I was applying with for an escrow loan to help me with my mortgage as well as bill consolidation. I need some advice as to what can be done about this situation.
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: I am in Chicago, Illinois
JA: Has anything been filed or reported?
Customer: No
JA: Anything else you want the lawyer to know before I connect you?
Customer: When my mortgage was sold to the financial lender that I am with now, was it legal for them to set me up in a balloon mortgage without my knowledge? Also, I asked them about moving me to an escrow and they told me know.

Thanks for the chance to help. I am an attorney with over 12 years experience. Hopefully I can help you with your legal question.

I am sorry for this dilemma. But not sure I understand your specific question.You say you have a mortgage but you do not know its terms? Did you not read it before you signed it?

Customer: replied 10 months ago.
My mortgage was sold to this institution. There was no explanation of terms or signing. When I received a letter from them saying that the mortgage was sold to them, nothing would change from the last financial institution that I was with; payments are the same; on the same day. The problem is, I did not have a balloon mortgage before.

Thanks
Did you sign a new mortgage contract? Or was this a case where the loan was sold, but you had no input into the matter?

Customer: replied 10 months ago.
NO. I did not sign a new contract. Loan was sold. I had no input in the matter.

Thanks
That makes it easy...they (the new holder of your note) have NO authority to modify the contract.
The lender can sell the loan (that is common)...but the terms of the loan do NOT change...so they can sell the loan, but the terms remain the same...they can not, now, force you to pay a "balloon" if that was not part of the original agreement. That is not legal. You are entitled to the terms of the original loan (the one you signed).

Please let me know if you have more questions. I am happy to help if I can. Otherwise, please rate the answer so I may get credit for my work.

Customer: replied 10 months ago.
Thank you. I will let you know if I have more questions.By the way. I am still looking for a financial institution that will help me with an escrow account. Is there a listing of institutions that can assist me?

sorry...you want a list of what exactly?

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