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No Payoff Document |
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I hope this question may help others in a similar predicament. My husband originally purchased a property in 2004 (for investment purposes) and had a 5/1 ARM mortgage (with a 2nd, variable interest mortgage). In early 2006, we took a HELOC out on our primary residence to pay off the variable interest 2nd mortgage. We then refinanced to one mortgage with a fixed rate. We are now refinancing the mortgage on the investment property to lock in a better, fixed rate. However, we never received a document from the 2nd mortgage holder that the 2nd mortgage was paid off entirely. All we have is some paperwork discussing the pay-off, money that was returned to us for overpayment, and a statement saying we owe "0". The 2nd mortgage holder is now defunct (it's Greenpoint) as so many are in the mortgage meltdown, and in order to get anything from them saying the 2nd mortgage was paid off, they are demanding a processing fee. Do we need the documentation and do they have a right to charge us for it? |
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In my state, New York, the mortgage lender is required by law to furish you with a certificate of satisfaction for your loan payoff, and also to have it entered in your county's public records. This is extremely important, and I doubt if your new loan will go through with that one still on the record.
I don't know the law in your state, but you should get in touch with the state agency that regulates mortgages in Washington immediately. You very much need that document. |
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Edith
Originally published on April 2, 2008 |
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