Economy
Related: About this forumAnd now..zombie Mortgages! (Turns out, the banks only SAID your mortgage was paid off.)
Cross posted from GD:
Reuters) - "In July 2009, Roy and Sheila Bowers refinanced the mortgage on their suburban ranch home in Topeka, Kansas.
The couple wanted to take advantage of the low interest rates that were all the rage at the time.
But what the Bowers never imagined was that their old loan, the one Wells Fargo told them was paid off, would resurrect itself, trashing their credit report, scotching their son's student loans and throwing the whole family into foreclosure.
All, they say, even though they didn't miss a single mortgage payment. "
http://www.reuters.com/article/2012/01/26/us-usa-housing-mortgage-reincarnation-idUSTRE80P0SJ20120126
Key excerpt:
"More and more, homeowners say that mortgages they thought were dead and buried are springing back to life, sometimes haunting them all the way into foreclosure.
"It's the most egregious manifestation of an industry that's seriously broken," said Ira Rheingold, a lawyer who is the executive director of the National Association of Consumer Advocate.
Diane Thompson, an attorney with the National Consumer Law Center, says she has defended hundreds of foreclosure cases, and in nearly all of them, the homeowner was not in default. "The record-keeping on the part of the mortgage servicers is not to be trusted.""
Why Syzygy
(18,928 posts)This crap is not going to stop until SOMEONE is held accountable! And I mean someone high up, not the loan girl in the office.
Systematic Chaos
(8,601 posts)n/t
mbperrin
(7,672 posts)I figure at $1,000 per license (one banker allowed for each license, please), that we could pay off every person's mortgage in the country in short order!
Not sure if I'm being sarcastic or not....
dixiegrrrrl
(60,010 posts)JDPriestly
(57,936 posts)we got calls and letters advising us that we could refinance our original loan.
And they did this to save a few bucks on the fees to the government that they had to pay to record the transactions. What jerks!!!!