Deafult Question

[mecoleman]

I was 30 days late making my august paying my mortgage. I paid on 8/3. A few days later I received a notice of default. I immediately called the mortage company and was told that since they received my payment, my account was "current". I received my mortgage statement a few days later and it said I was in default and I needed to contact them to stop foreclosure proceedings. I called 4 times last week, only to be told that my loan is fine, not to worry about it and to make the August payment before the 30 day late period and I would be fine. I mailed a payment on 8/14 for August and had it returned via the post office. I am supposed to close on a refinance on Tuesday, 8/25. Monies for payment will be wired to my mortgage company on the 25th. What should I do in the meantime? I am afraid my refi won't go through because of this new situation. I am also afraid that they will not accept my payoff. I don't understand this default and foreclosure stuff. I am in VA. Please help.

 

[mecoleman]

Update:

I meant I was 30 days late on July payment. Paid it on 8/3. Sorry for typo.

 

[JETX]

What should I do in the meantime?

What you need to do IMMEDIATELY is start getting all of these 'no problems' in writing. Contact them again and ask to speak to a supervisor. Get his/her name and extension. Then, discuss ALL the issues of payments, etc. resolved. Ask them to confirm IN WRITING!!!

The problem is... your refi may very much be in jeopardy.... or at least your payoff may not be correct.

 

[mecoleman]

Thanks, but

I have an uncooperative mortgage company. I do have, in writing, where they agreed to let me make the July payment on 8/3. I will press this time and ask for a supervisor. Isn't the title company or new lender required by law to get the new payoff, in writing, just prior to closing. Also, my broker stated that they have a payoff dated 8/6, which (in writing) is good for 30 days. Won't this ensure that they have to take my payoff? Or can they refuse the payoff? If they do refuse the payoff, what happens? Who is responsible? Geezzzzzzzzzz.........my head hurts!

 

[JETX]

Isn't the title company or new lender required by law to get the new payoff, in writing, just prior to closing.

No. Someone (you or them) SHOULD get the payoff in writing immediately before closing, but I doubt that it is a statutory requirement that THEY get it. My main concern would be not in getting it, but that it be accurate and NOT include additional costs of foreclosure proceedings, legal costs, etc. as MIGHT be included.

 

[mecoleman]

Me again

I am paying to get a payoff quote myself and am insisting that the new lender get one as well (I have told them I am happy to pay for that one as well). Just want to make sure that there aren't any glitches. Any info you have on Homecomings Financial? Have read many bad postings about them & that is my current mortgage company.

 

[BriantheBanker]

Don't worry

If your loan is truely "ready to close," Your mortgage officer should be clearing/meeting underwriter conditions (ie: paystub, home owners ins, etc...)
If your loan is not actually APPROVED by the lender, the lender could request verification the mortgage payment was made on time (w/in 30 days.)
If your loan is approved and you have sent ALL conditions your loan officer (after LO has submitted complete file to underwriting...(appraisal done, etc...)) you should be ok.
Let's say your new loan closes and funds and the payoff is sent back, the title company/escrow company is responsible for any shortage. It is the escrow agents responsibility to ensure an accurate payoff.
That is part of the closing be insured.
Close fast and you're ok. If you close & fund, it's on the escrow agent.

Good luck,

BriantheBanker