jpathfynder
Member
What is the name of your state? Michigan
1999 - I purchased my primary residence with a conventional mortgage in the amount of $85,000. This mortgage and note were signed by myself and both my parents.
2005 - My parents refinanced their home through the same bank and signed a R 1-4 family rider which contains a cross default clause. This mortgage, note and rider where signed by my parents and not by me.
October 2007 - I pull building permits to renovate my house and add on a 1,000 sqft addiion. The building permits are valid until October 2008.
October 2007 - I start rennovating my house and start the excavation for the addition's basement.
Desember 2007 - My parents default on several different mortgages all held at the same bank my mortgage is at.
January 2008 - My parents find a purchaser willing to buy a 26 acre parcel for $55,000 which is mortgaged together with their primary residence. The proceeds of this sale would bring them current on all their mortgages and taxes, and pay down this mortgage balance from 185,000 to 160,000 leaving their house and an additional 1 acre parcel as collateral under the mortgage. Their house (which is on a lake) appraised at $349,000 not including the 1 acre parcel.
February 2008 - The bank goes out to inspect my parents property, which happens to be next door to my property.
February 2008 - The bank says no and refuses a partial release stating the parcel is worth more than $55,000. This is land-locked farmland (currently a corn field), 14 acres tillable, 12 acres of swamp and woods. The potential purchaser owns the property abutting it from behind.
February 2008 - My parents meet with the bank and, in my opinion, are coerced into a fobereance agreement. This agreement would blanket mortgage their primary residence, office building, vacant lots, and rental property. It would also increase their total monthly payments by $800.00. At this point they have verbally agreed and are given a check to pay all back property taxes to date on all their properties.
March 2008 - After discussing this forbearance agreement among ourselves, with other mortgage lenders and an attorney my parents change thier mind. I loan them the money to bring their primary residence current. They go to the bank, make the payments and inform them that they've changed their minds concerning the forbearance. They also return the check for property taxes.
March 2008 - I go to the bank accross the street to refianace my house. It appraises at $230,000 as is, during construction.
March 2008 - My parents receive certified mail stating all their mortgages are in default (except their home) and they have all been accelerated (except their home). Including the mortage on my house.
March 2008 - I receive certified mail stating my mortgage is in default due to violation of the "physical damage to the property" clause. It says I have 30 days to repair. The mortgage balance is $76,000 with an appraised value of $230,000. The new $16,000 basement is poured and backfilled.
March 2008 - My new financing comes through at 5 1/4%. The new lender requests a mortgage payoff letter. The payoff includes my mortgage balance, interest to the day of closing, and a $2483 charge labled "Other/Legal" which my parents tell me is the amount of the forbearance agreement legal preperation costs, which was to be added on to their blanket mortgage balance.
Also, I have made all payments on my loan, not a single payment ever late, not even by a day.
HER ARE MY QUESTIONS:
1) Is my mortgae in default under a "physical damage" clause, when the physical damage is construction with active building permits? There is nothing in my mortgage or note that requires me to get permission or even inform the bank of construction. However, I did verbally inform my loan officer, at the time of the loan, that my eventual plans where to gut the house and add on an addition. His reply: "go for it". He has since retired and the once local bank was purchased by a larger bank a year or so ago.
2) The banks claim of cross-default is that my mortgage is in default, which in-turn, defaults my parents mortgage. This gives them the right to assess the legal fees associated with my parents mortgages to my (and parents) mortgage. Basically they are holding me responsible for fees because of a cross-default rider my parents signed on their mortgage. Can they do this?
1999 - I purchased my primary residence with a conventional mortgage in the amount of $85,000. This mortgage and note were signed by myself and both my parents.
2005 - My parents refinanced their home through the same bank and signed a R 1-4 family rider which contains a cross default clause. This mortgage, note and rider where signed by my parents and not by me.
October 2007 - I pull building permits to renovate my house and add on a 1,000 sqft addiion. The building permits are valid until October 2008.
October 2007 - I start rennovating my house and start the excavation for the addition's basement.
Desember 2007 - My parents default on several different mortgages all held at the same bank my mortgage is at.
January 2008 - My parents find a purchaser willing to buy a 26 acre parcel for $55,000 which is mortgaged together with their primary residence. The proceeds of this sale would bring them current on all their mortgages and taxes, and pay down this mortgage balance from 185,000 to 160,000 leaving their house and an additional 1 acre parcel as collateral under the mortgage. Their house (which is on a lake) appraised at $349,000 not including the 1 acre parcel.
February 2008 - The bank goes out to inspect my parents property, which happens to be next door to my property.
February 2008 - The bank says no and refuses a partial release stating the parcel is worth more than $55,000. This is land-locked farmland (currently a corn field), 14 acres tillable, 12 acres of swamp and woods. The potential purchaser owns the property abutting it from behind.
February 2008 - My parents meet with the bank and, in my opinion, are coerced into a fobereance agreement. This agreement would blanket mortgage their primary residence, office building, vacant lots, and rental property. It would also increase their total monthly payments by $800.00. At this point they have verbally agreed and are given a check to pay all back property taxes to date on all their properties.
March 2008 - After discussing this forbearance agreement among ourselves, with other mortgage lenders and an attorney my parents change thier mind. I loan them the money to bring their primary residence current. They go to the bank, make the payments and inform them that they've changed their minds concerning the forbearance. They also return the check for property taxes.
March 2008 - I go to the bank accross the street to refianace my house. It appraises at $230,000 as is, during construction.
March 2008 - My parents receive certified mail stating all their mortgages are in default (except their home) and they have all been accelerated (except their home). Including the mortage on my house.
March 2008 - I receive certified mail stating my mortgage is in default due to violation of the "physical damage to the property" clause. It says I have 30 days to repair. The mortgage balance is $76,000 with an appraised value of $230,000. The new $16,000 basement is poured and backfilled.
March 2008 - My new financing comes through at 5 1/4%. The new lender requests a mortgage payoff letter. The payoff includes my mortgage balance, interest to the day of closing, and a $2483 charge labled "Other/Legal" which my parents tell me is the amount of the forbearance agreement legal preperation costs, which was to be added on to their blanket mortgage balance.
Also, I have made all payments on my loan, not a single payment ever late, not even by a day.
HER ARE MY QUESTIONS:
1) Is my mortgae in default under a "physical damage" clause, when the physical damage is construction with active building permits? There is nothing in my mortgage or note that requires me to get permission or even inform the bank of construction. However, I did verbally inform my loan officer, at the time of the loan, that my eventual plans where to gut the house and add on an addition. His reply: "go for it". He has since retired and the once local bank was purchased by a larger bank a year or so ago.
2) The banks claim of cross-default is that my mortgage is in default, which in-turn, defaults my parents mortgage. This gives them the right to assess the legal fees associated with my parents mortgages to my (and parents) mortgage. Basically they are holding me responsible for fees because of a cross-default rider my parents signed on their mortgage. Can they do this?