Special offer

Lender REFUSES to give a payoff!

By
Managing Real Estate Broker with Southeast Alaska Real Estate RECB 15265

Yes, this letter is real.

December 4, 2009

 Dear JP Morgan Chase –

I have enclosed some documentation and I hope someone can help me.  I represent a homeowner who wishes to sell their home.  We have an accepted offer.  Payoff amount was requested November 6, and several times since.

A notice of default was filed November 25 - over two weeks after the first request for payoff (several times, we were told you never received the request).  Are you just trying to run up the bill?

The title company was told that if they called again, they would “go to the bottom of the pile”.  Money to pay the loan has been at the title company for weeks.  This is NOT a short sale!

Fortunately, this is a cash buyer.  If there were a new mortgage involved, this deal would have crashed and burned weeks ago.  It still might though, because the buyer isn’t going to wait forever.

In the meantime, your company has called one of my colleagues to proceed with foreclosure.  I don’t understand why you wouldn’t want to collect the full amount due on this mortgage.

Respectfully,

Debbie White, Broker

We all need to report every abuse we see from the financial institutions! I am also assisting my clients in filing a complaint with the OCC.  Any suggestions from my fellow "rainers" would be most welcome at this point.  I'm about to lose the deal, the seller their credit, the buyer their home.  There's no good reason for this.

 

Posted by

Debbie White, Broker

Prudential Southeast Alaska Real Estate

8465 Old Dairy Road #101

Juneau, AK 99801

907-723-9886 (Cell)

Comments (12)

Debbie White
Southeast Alaska Real Estate - Juneau, AK
I Sell Alaska!

Thank goodness for awesome buyers.  Buyer just stopped by the office - again - and says that he thought a cash transaction would be easy and never expected complications!  Now I feel even more obligated to get this done!

Dec 04, 2009 08:08 AM
Richard Weisser
Richard Weisser Realty - Newnan, GA
Richard Weisser Retired Real Estate Professional

Debbie...

Send a copy of this blog to your representatives in Congress RIGHT NOW!

Featured in the Group "Whacked!!!:

Dec 04, 2009 08:09 AM
Debbie White
Southeast Alaska Real Estate - Juneau, AK
I Sell Alaska!

Hi, Richard -


I did send this to all three of my congressional representatives, as you suggested.

Dec 04, 2009 08:57 AM
Marty Van Diest
Valley Market Real Estate - Wasilla, AK
Your Alaskan Realtor

Send it to the BBB in the city where they are handling this.

You need to jump all over this.  Banks can be nuts sometimes.

On the other hand, I currently have a short sale going with Wells Fargo that is so smooth I can't believe it.

Dec 05, 2009 05:20 PM
Debbie White
Southeast Alaska Real Estate - Juneau, AK
I Sell Alaska!

That's what gets me Marty.  Any reputable lender would be jumping through hoops of fire to get us a payoff.  The CASH buyer's money has been at the title company for almost a month!  He could walk at any time.

Dec 05, 2009 06:00 PM
Julia Odom
Select Realty Professionals - Chattanooga, TN
Chattanooga Homes for Sale

Wow, that is absolutely incredible. Good luck in getting this resolved. How hard is it to get a payoff???

Dec 06, 2009 04:59 AM
Debbie White
Southeast Alaska Real Estate - Juneau, AK
I Sell Alaska!

It shouldn't be hard at all.  you would think they would WANT full payment on the loan!

If anybody has any ideas, I'm all ears.

Dec 06, 2009 05:32 AM
Debbie White
Southeast Alaska Real Estate - Juneau, AK
I Sell Alaska!

Finally received a payoff on December 12.  Of course, now they had all these fees attached.   Brought it to the brink of a short sale!  There is no law stating a lender MUST provide a payoff when someone wants to pay off their mortgage.  Something is truly wrong.

Dec 12, 2009 05:35 AM
yanni raz
hml investments - Los Angeles, CA

I wanted to share some more information.

Fannie Mae and Freddie Mac make it harder for home buyers and real estate investors with mortgages on Condos. It's hard to really understand why these giants corporations are tightening their regulations while the government is trying to fix the economy. If you're a condo home buyer or a condo home seller you should read this article because it might change the way your realtor presents your property.

These days most real estate purchases are done by real estate investors. This is a great time for all investors to put the money they've saved in the past years in real estate, but purchasing condos is a little different animal I guess unless if you will purchase the property cash. Condos are a little different than single family residents by all means, also by the way they've getting financed by banks or the government.

Fannie Mae and Freddie Mac have said in march that they will no longer guarantee mortgages on condos in buildings where fewer than 70 percent of the units have been sold. They've created controversy, this may drive the condos market down because they are one of the main investors in America to land money on real estate. I'm thinking how the first 70% of condos will sale if home buyers and/or real estate investors can't get a loan to purchase them.

While I'm thinking about Fannie Mae and Freddie Mac's new regulations and thinking about the real estate market and the economy crisis in the world I discovered another new reason why Fannie Mae and Freddie Mac will not land money to new home owners: "delinquency in home owner association dues. I really don't know why it's so important that while a home buyer with a great credit comes to purchase a condo in a building that other homeowners weren't responsible enough to pay the Home owner association dues will not qualify for a mortgage.

Fannie Mae and Freddie Mac said they will not guarantee mortgages to condo buyers if 15% of the homeowners in the building are delinquent on the homeowner association dues.

That's what I wanted to talk about today just to give you readers some general information about the market.

Good Luck.

Dec 24, 2009 09:15 AM
Lanora Campbell
NMLS#232975 - Springfield, MO
Ozarks Home Loan Professional

Debbie, good to hear that you finally got it paid off.  There is no excuse for Lenders to act this way.  Looks like to me that something needs to change.

Dec 29, 2009 02:17 AM
Colleen Bigler
Loan Solution Inc. - Canyon Country, CA

I am a little late but for the future.. Since I deal with fast private money loans we order demands

day one on a rush. The law states you must send the demand am't within 20 days. I am not

going to seach for it now, but it is a written law we send to remind lender if they are being slow.

Jan 07, 2010 04:05 PM
Anonymous
Dana Shafman

http://www.consumerfinance.gov/newsroom/consumer-financial-protection-bureau-rules-establish-strong-protections-for-homeowners-facing-foreclosure/

CFPB/RESPA/DODD-FRANK
"No Runarounds"

When mortgage servicers make mistakes, records get lost, payments are processed too slowly, or servicer personnel do not have the latest information about a consumer’s account, the consumer suffers the consequences. The CFPB’s rules will require common-sense policies and procedures for handling consumer accounts and preventing runarounds. These rules include:

Payments Promptly Credited: Servicers must credit a consumer’s account the date a payment is received. If the servicer places partial payments in a “suspense account,” once the amount in such an account equals a full payment, the servicer must credit it to the borrower’s account.

Prompt Response to Requests for Payoff Balances: Servicers must generally provide a response to consumer requests for the payoff balances of their mortgage loans within seven business days of receiving a written request.

Errors Corrected and Information Provided Quickly: Servicers must generally acknowledge receipt of written notices from consumers regarding certain errors or requesting information about their mortgage loans. Generally, within 30 days, the servicer must: correct the error and provide the information requested; conduct a reasonable investigation and inform the borrower why the error did not occur; or inform the borrower that the information requested is unavailable.

Maintain Accurate and Accessible Documents and Information: Servicers must store borrower information in a way that allows it to be easily accessible. Servicers must also have policies and procedures in place to ensure that they can provide timely and accurate information to borrowers, investors, and in any foreclosure proceeding, the courts.

Nov 10, 2014 12:20 AM
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