     Jennifer Notle | Monday, November 01, 1999 - 05:20 pm 
My husband and I filed a bankruptcy in February of this year in order to relieve us from a forclosure and other debts. The deal is that we have a repayment plan in place to pay the past due amounts. Shortly after we closed on our bankruptcy, I recieved a notice in the mail from our 2nd mortgage company, notifing me that they would be appling the past due payments to the end of the loan. Why would they agree to have me repay the past due amount now? I continued to make my regularly scheduled monthly payments. In July the company cut me a check in the amount of my payment saying that "You recently sent us your final payment on the above referenced account. The enclosed check of $###.## represents an overpayment." Now am really confused. So I get a copy of my credit report, get it updated to transfer my debts to the bankruptcy. My new report states that the mortgage was "cancelled by credit grantor" and then states in addition that is was "charged off as a bad debt". I called the mortgage company after reading this to question them about the letter of overpayment and the information on our credit report. I was told by the first 2 people that they didn't know what was going on. They both sent me on to the person who collected any and all information on my account, sends notices and makes all the changs on my loan. She alone takes care of it all, my loan. She said that the original acct# of my loan was invalid and no longer correct and that the one enclosed with the letter she sent me was. She then goes on to tell me that she shows 240 payments being paid in full. I was scheduled to pay them 240 payments! I have only made about 24 of them. She insisted that is was paid. I have tried to dispute it, but they don't care to listen now that they actually think I have made all of the payments. My question is, we are currently trying to sell our home, we already have another, and are wondering what will happen at the closing of this home. Being that the credit report reads that it is charged off, will they take any equity in the home to pay it or do I pay it in good faith? Or can I just forget about it considering that my credit is ruined for several years. If it were truely paid or by paid by mistake according to the mortgage company would this not be recorded as paid? Should I send a copy of the overpayment letter to the credit bureau? I do not want to evoke fraud though!! Any help would be appreciated!!!!!!! |
| Christine Baker | Monday, November 01, 1999 - 07:38 pm
1) Your credit is ruined anyway, due to the bankruptcy you just filed this year. If it turns out that you have to pay off that loan after all, I'd deal with it then.
I'm wondering if they discharged the debt? Are you sure it was secured by your house?
2) If the house is listed, I'd ask the broker to open escrow and order a prelim, and have them order the pay-off demand if that loan still shows. It probably will. Then it all depends on how the lender responds.
I know of some people who had an equity line with BofA and they wrote a 40k check on it. It cleared, and a few months later they refinanced. BofA insisted that the balance was 0. That was a few years ago now, BofA never figured it out and they got to keep the 40k.
Why don't I ever have that kind of luck??????? |
| Jennifer notle | Tuesday, November 02, 1999 - 10:05 am
How would I find out if this second mortgage is secured by my home? Would it be recorder with the county recorders office? I have the closing papers, what exactly am I looking for?
Would a 2nd be considered a type of lien? Can they come after me for the money? For how long? What process would you think they would use?
What should I disclose to my realitor, regarding the amount of information he or she would need to obtain a pay off amount. I would hate to send up any red flags. Would I need to sign a waiver to the realitor so that they may obtain the information from the mortgage company?
Thanks jennifer |
| Christine Baker | Tuesday, November 02, 1999 - 04:01 pm
I have NO idea what lenders will do, and neither do they. You should have noticed that by now :)
I don't know who your lender is, and I haven't reviewed your loan documents. I also don't have a crystal ball.
And it all really doesn't matter. What counts is what's on the pay-off demand they send to escrow. IF it's zero, take the money and put it in a CD. IF they come after you later, which is unlikely, just pay em back.
Apparently you haven't listed your house yet. I suggest you interview a few agents and tell them that you disagree with the lender over the amount owed. The agent should be able to EXPLAIN to you EVERYTHING pertaining to prelims and payoffs.
Interview agents until you find someone you're comfortable with.
I'm assuming that you don't have a deadline. You might want to continue making your scheduled payments while you wait for the pay-off demand.
Good luck, and please let us know what happens!
Christine |
| k'lynn | Thursday, November 25, 1999 - 07:14 pm
Has anyone heard anymore information on this? |
| voigtkampff | Friday, November 26, 1999 - 07:40 am
At least in Florida, a lien is evidenced by the recording of a mortgage deed in the county records. (A mortgage deed is not the same as a quit-claim or warranty deed. It deos not evidence title). Documentary stamps must be paid, as stamped on the mortgage deed. Even if no mortgage deed is recorded, some jurisdictions might view the loan to be secured by a vendor's lien. |
