As my attorney explained it to a defaulted note payor whose note I had purchased from a private seller, the original noteholder assigned all of their interests in the note over to this new assignee (me). This assignee steps into the exact same position as the old noteholder. The old noteholders rights and resposibilities under the terms and conditions of the note go with it. This is why mortgage contracts have that clause that states that the contract is binding on “all parties, their assigns, heirs and nominees” or something similar.
This means that the rights under the note can be transferred as long as nothing to the contrary appears in the contract (as in a due on sale clause or a no-assumption clause) I’m sure the collection agency’s agreement with the old noteholder had a similar clause in it so it wouldn’t matter which name they gave you, the interest in the contract now belongs to the new noteholder as well.
May not be what you wanted to hear but I hope this helped anyway.
I have a seller who is in foreclosure. The lender they had the loan with started foreclosure and turned things over to a collection company that is handling the foreclosure for them. While they were in the process of foreclosing the lender sold the mortgage to another company. They sent notification to the seller informing them their loan had been transfered to another lender. They also stated that if the property was in foreclosure that it would continue through the new mortgage holder automatically without any interruptions.
Now they get a notice from this collection company that was handling the foreclosure for the original lender stating their is a court date to have a hearing to enter a default judgement. They are suing under the original lenders name as the plantiff even though they no longer hold the mortgage since they sold it to someone else. Can they do this or would the suit have to be filed through the new mortgage holder that purchased the mortgage?
Since the original lender has sold the mortgage wouldn’t the new mortgage holder have to start the foreclosure process all over again? Or at least have the suit filed naming the new mortgage holder as the plaintiff?
Would this just be a matter of going to court on the court date set and having the case dismissed since the original lender no longer holds the mortgage and the suit is listing the original mortgage holder as the plaintiff or can they legally do this?
Keith is on the money with regards to assigning ones interest in a mortgage performing or not. Additionally in many jurisditions it is feasible to also assigned ones legal action that has already been started to the assignee of the mortgage (the new mortgagee) as well.