jpathfynder
Member
What is the name of your state? Michigan
I received a certified letter stating that my mortgage was in default due to "damage to secured property". It gave me 30 days to complete repairs to the property.
1) I've had this loan for 7 years and made all payments on time.
2) I have a building permit pulled on the property good thruogh October 2008
3) The "damage" they're referring to is a construction project adding an addition onto my existing house.
4) They inspected the property and didn't notice the neon colored building permit posted out front, as required by the building inspection dept., or the 1,000 sqft basement now attached to the house.
5) I had an "As Is" appraisal done (under construction) and the value was $230,000, my loan balance was $77,000
Within 10 days of receiving this letter I refinanced my home and payed off the old mortgage. The mortgage payoff included $2500.00 in legal fees, which I paid.
First, is $2500 for a notice of default letter (1 page, well 2/3 of 1 page, which most of was copied word for word out of my mortgage)) considered "reasonable legal fees in pursing the remedies contained within this mortgage"?
Second, was my mortgage even in default? The Bank said I was required to notify them prior to construction, so I went into the Bank with my mortgage and asked them to show me where it said that, which of course, they couldn't, because it doesn't require me to.
I received a certified letter stating that my mortgage was in default due to "damage to secured property". It gave me 30 days to complete repairs to the property.
1) I've had this loan for 7 years and made all payments on time.
2) I have a building permit pulled on the property good thruogh October 2008
3) The "damage" they're referring to is a construction project adding an addition onto my existing house.
4) They inspected the property and didn't notice the neon colored building permit posted out front, as required by the building inspection dept., or the 1,000 sqft basement now attached to the house.
5) I had an "As Is" appraisal done (under construction) and the value was $230,000, my loan balance was $77,000
Within 10 days of receiving this letter I refinanced my home and payed off the old mortgage. The mortgage payoff included $2500.00 in legal fees, which I paid.
First, is $2500 for a notice of default letter (1 page, well 2/3 of 1 page, which most of was copied word for word out of my mortgage)) considered "reasonable legal fees in pursing the remedies contained within this mortgage"?
Second, was my mortgage even in default? The Bank said I was required to notify them prior to construction, so I went into the Bank with my mortgage and asked them to show me where it said that, which of course, they couldn't, because it doesn't require me to.