Replies to This Discussion

Permalink Reply by Mike Linkenauger on February 15, 2011 at 11:48am

WOW!!  Let us know how that one works out!  Awesome stuff!!!

 

Don't know what state you are in as far as the laws go, but when a property sells and forecloses in Florida (my state), the title is transferred right away.  In other words, she may have a satisfaction of mortgage which may keep her from being liable for the deficiency (assuming you are in a recourse state) and will make it possible to purchase a home as quickly as she can rebuild her credit up to the now required 580 for FHA.  Unfortunately, if it DID sell at foreclosure than title has been likely transferred (unless she is in a state with redemption period...)

 

Definitely let us know what happens from this!  Any way you cut it, it is good news for the borrower!

Permalink Reply by Pamela Ann Zyski on February 16, 2011 at 4:16pm

We are a Michigan company so we have the redemption period. 

 

Here is what's happens since my last post:

 

I called the MAR legal hotline.  After the attorney laughed for a minute he said that he had never heard anything like this before but said my fiduciary responsibility was to the seller & have her contact her own attorney...they told her to record the original note they sent back to her that they had stamped "paid in full" even though the credit union had already sent a discharge of mortgage to the Register of Deeds.  Upon further research the seller's attorney found the property mistakenly never made it to sheriff sale...

 

We are waiting to see what the attorney tells us next.  Our city is a small suburb just north of Detroit & our values have dropped so low the attorney feels we are not going to be worth the credit union's efforts to do anything more than write us off as a bad mistake...we shall see.

 

 

Permalink Reply by Phil Sotelo on April 12, 2011 at 6:52pm

Hi Pamela, what was the verdict? Please don't tell me the owner returned the note. The banks are screwing up big time right now. I've heard of this happening several times. There are a lot of people suing the banks because they can't prove they are the actual owners of the note. 

By what you are saying the owner does have their house paid off. I've been looking in to this for the past 3 months. There is a way to get this done and I'm going to find out. 

Permalink Reply by Pamela Ann Zyski on April 12, 2011 at 10:06pm

The seller talked to an attorney that said she should keep the note and not return it...the house is showing paid in full because of the lender's mistake.  She is happily staying in her property.  The attorney said the lender has made no further advance to do anything more than to write her off as their mistake...still can't believe it but I'm happy she can stay here in her home.