Question

Jo is duly notified that her mortgage with Fund All Savings has been transferred to Big Loan Co. and that she should henceforth pay Big Loan Co. Jo continues to pay Fund All Savings and Big Loan Co. sues Jo for nonpayment. Which of the following is most likely to be the court's judgment?
a. Jo is not liable to Big Loan Co. since she has already paid to Fund All Savings.
b. Jo is liable to Fund All Savings and to Big Loan Co. since her mortgage has been transferred.
c. Jo is liable to Fund All Savings since her mortgage was processed by them.
d. Jo is liable to Big Loan Co. since she received a notice from them about the assignment.

Answer 1

Answer:

Option D; JO IS LIABLE TO BIG LOAN CO. SINCE SHE RECEIVED A NOTICE FROM THEM ABOUT THE ASSIGNMENT.

Explanation:

A mortgage is a loan provided by a mortgage lender or a bank that enables an individual to purchase a home.

Mortgage payments usually occur on a monthly basis and consist of four main parts: principal, interest, taxes and insurance.

A transfer of mortgage is the reassignment of an existing mortgage, usually on a home, from the current holder to another person or entity.

When mortgage is transferred, two notices will be sent: one from the current mortgage servicer and the other from the new servicer. All payments after the notification will be made to the new servicer.

Since Jo was notified about the reassignment from Fund All Savings to Big loan Co. but still continues to pay Fund All Savings and Big Loan Co. sues Jo for nonpayment. What is most likely to be the court's judgement is that JO IS LIABLE TO BIG LOAN Co. SINCE SHE RECEIVED A NOTICE FROM THEM ABOUT THE ASSIGNMENT.