Contract with a loan Company

[tater_tot]

I'm in Virginia and my father-in-law had a loan through a company (company #1) and he had the insurance on there where if he became disabled they would pay his payment. Then about two years ago he became permanetly disabled. They were making his payments, and then about 6 months ago a new majolr company (company #2) bought the other loan company out, now he's being harrassed by the new company for the money. Doesn't company #2 have to honor the compnay #1's contracts? Or is he screwed? Even though company #1 was bought out by company #2 doesn't company #2 still have to pay his payments because he is still disable (like I said he is permanetly disabled)? I mean even though company #2 bought company #1 out any one who is paying on a loan to company #1 still has to pay for the loan, I mean they don't get out of paying just because company #1 was bought out. I mean company #2 bought the contracts right? Which means you still have to honor those contracts because it's just transferred, right? Isn't it the same with the insurance contracts on those loans? Sorry for the confusion I hope you all understand my question. Thanks for the help.

 

[HomeGuru]

You are correct.