Escrow Mistake

[I.R.]

What is the name of your state?NEVADA
I sold a house 3 months ago, I had two firsts, in order to avoid PMI, only one got paid off, I kept paying the monthly payment, today the escrow calls me and informes me that i owe 25,000 which
was the second first, i spent some of the money what are my options or my risks.

 

[nextwife]

What? You had placed two loans (BTW-only ONE loan can be a first, by definition, any loan done while an earlier mortgage is still against the property, that is not subordinated, is a jr. loan) against the house, and signed a closing statement paying off only one?

You were well aware you had two mortages. If only one of the two were being paid off, obviously there was a mistake. YOU have a responsibilty to inform them if they missed a mortgage. Why was one left open? Was the title company not aware of it? Was it a recent loan and not yet of record when the title search was done?

You better figure out how to come up with the money that you never had any right to spend. You are otherwise in deep doo-doo.