Q: I have a question regarding unprocessed payments and who should get the money.
My brother in laws house was foreclosed on, prior to this the mortgage company stopped cashing the payment checks (for five months) He was allowing a family member to stay in the house, and they paid $500 per month. As they didn’t have a checking account I sent the checks for them to the mortgage company (by registered mail). Fast forward, the house got foreclosed on, and I’m sitting here with $2500 that isn’t mine. My question is, who do I give the money too, legally? The home owner or the person who was paying the payments? I have held on to it because I didn’t know when or if the mortgage company will realize their mistake and ask for the money, but I don’t want to hold on to money that isn’t mine, do I give it back to the person who paid, the home owner who believes it’s theirs or hold on to it in case the mortgage company want to collect?
A: You have no obligation to pay anything to the mortgage company, merely an obligation to hold the funds you received from the "family member". You should pay those funds to whomever the "family member" tells you to pay. And, by the way, if the "family member" didn't sign the mortgage note, he or she probably doesn't have an obligation to pay the mortgage company either.
DO NOT WORRY ABOUT THE MORTGAGE COMPANY.
If the mortgage company wanted the money they would have accepted the $500 checks. The reason they did not accept the checks is that they wanted to foreclose and take the house (much more valuable, right?).
So THINK: Who do you believe the money belongs to? Not you, right? Not the mortgage company, right? Not the tenant who got free rent, right? So....that leaves the person who gave you the money to try to pay the rent, right?
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