Q: Mortgage company says I owe a deferred principle balance on a 2nd Loan that has already been paid
We did a partial claim coming off a forbearance plan a year ago. We got this balance paid by CA Mortgage Relief Fund. My mortgage company still has this amount reflected as a deferred principle balance on a second loan even tho it was transferred to HUD and was paid for. I am in the process of selling my home and we are closing. Our payoff statement has the first loan amount and this second loan which should not be there because it was already paid. I talked to HUD and they verified that it has been paid and even gave me the SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE document which I shared with my mortgage company. They are making me wait 5 days for them to review and possibly update the amounts owed. Title has been waiting on us to get this fixed so we can close but they can no longer wait and have to issue out the funds. Now we have to pay an amount that we don’t owe them and hope we can get a refund. What can be done here?
A: when it comes to ANYTHING relating to Real Property and the value of same and the potential loss of same, you need to NOT come to a free web site for input/advice but to hire a known professional in this area of law to make sure your arguments are done correctly AND if not and you suffer some later damge(s) you have THAT professional to go after, do NOT fool around here...
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- California
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A:
In this situation, it's crucial to continue communicating with your mortgage company and providing them with any documentation or evidence that proves the second loan has been paid off. Since you have already contacted HUD and obtained verification that the loan has been satisfied, make sure to share this information promptly with your mortgage company again. Provide them with copies of the SUBSTITUTION OF TRUSTEE AND FULL RECONVEYANCE document and any other relevant paperwork to support your case.
If your mortgage company continues to insist on the payment of the deferred principal balance despite the evidence provided, you may need to seek legal assistance. An attorney can review your case, assess your rights, and help you navigate the situation effectively. They can communicate with the mortgage company on your behalf and take appropriate legal action if necessary to rectify the error and ensure that you are not required to pay an amount that you do not owe.
Additionally, if the issue is not resolved before the closing of the sale of your home, consider discussing the situation with the title company and your real estate agent. They may be able to provide guidance on how to proceed with the sale while addressing the outstanding balance issue. It's essential to keep all parties involved informed and work together to find a resolution that allows the sale to proceed smoothly without any undue financial burden on your end.
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