Posted on: 26th Jan, 2009 04:33 pm
we refinanced our house over the maximum va limit 2 years ago. the loan closed at 434,000 and when the lender realized they made a mistake and couldn't sell the loan, they asked us to do a loan modification. they split the loan into 2, selling the first to chase at 417,000 and they retained a $15,000 second mortage (basically the cost of the refinance). after we signed the paperwork, i didn't hear anything from the lender for nearly 6 months...no statements or contact at all. advice from people i know in the mortgage business was that they probably wrote it off with the 2nd mortgage crisis that year and never filed title. when i would call them to find out where to mail a payment i was told i did not have a loan with them and they do not do 2nd mortgages at all. after 6 months of this, i recieved a call from their collections department demanding that i pay back payments and we agreed to start making payments going forward. i still receive no statements, customer service has no record of my account, it doesn't show up on my credit. this loan is an interest only 5 year balloon...after 5 years you have to pay it off. we've tried to refinance it back into the other loan and no one will do it. the situation is unimaginable to everyone i've explained it to. they said they filed title, but i have not been able to confirm this. the first still shows as a va loan for 434,000. the lender on my first has no clue either. i am so uneasy about this loan that i feel like i need advice from someone who knows what they're talking about. is this legal, do i need an attorney?
Hi cnmharrison!
Welcome to forums!
It is surprising that the original lender did not inform you that your loan has been sold off to a collection agency and moreover, they are not even giving you the payments details. I do not think this is legal and it will be better if you can consult a mortgage attorney in this regard. He will deal with the lender in this regard and help you in resolving the issue.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
It is surprising that the original lender did not inform you that your loan has been sold off to a collection agency and moreover, they are not even giving you the payments details. I do not think this is legal and it will be better if you can consult a mortgage attorney in this regard. He will deal with the lender in this regard and help you in resolving the issue.
Feel free to ask if you have further queries.
Sussane
They actually retained the mortgage...but the account is managed by someone in their internal collections department. The whole thing makes me lose sleep at night...especially when rates drop and I can't refinance.
I can understand your concern Melissa. I think you should follow Sussane's advice and consult a mortgage attorney in this regard.
are you saying that you don't believe you owe the $15,000.00? or that you owe it but don't know who to pay? why don't you vist your local register of deed's office and see what mortgages are filed for record? this will be the first thing any attorney will want to know, anyway. if there are two mortgages filed, one for $417k, and one for $15k, you will know that you have two mortgages that will have to be paid. if there is only the $417k mortgage, chances are the other one has fallen through the cracks somehow, but you will still owe the money, they just can't foreclose under that second mortgage. if there is one for $434k that is not released, plus the other two, you should be very skeptical and get an attorney to look in to it. anyway, you can do this research for free, and they will help you at you local deeds office.