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Thu Jan 26, 2012, 12:48 PM

And 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.""





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Reply And now..zombie Mortgages! (Turns out, the banks only SAID your mortgage was paid off.) (Original post)
dixiegrrrrl Jan 2012 OP
Why Syzygy Jan 2012 #1
Systematic Chaos Jan 2012 #2
mbperrin Jan 2012 #3
dixiegrrrrl Jan 2012 #4
JDPriestly Jan 2012 #5

Response to dixiegrrrrl (Original post)

Thu Jan 26, 2012, 01:58 PM

1. This

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.

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Response to Why Syzygy (Reply #1)

Thu Jan 26, 2012, 04:46 PM

2. This is enough to make me want to reverse my anti-death penalty stance.

n/t

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Response to dixiegrrrrl (Original post)

Thu Jan 26, 2012, 05:00 PM

3. About time to sell hunting licenses for banker season.

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....

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Response to mbperrin (Reply #3)

Thu Jan 26, 2012, 05:52 PM

4. Not sure if I am considering your idea seriously ...or not.

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Response to dixiegrrrrl (Original post)

Tue Jan 31, 2012, 02:05 PM

5. This explains why years after refinancing a couple of times to get lower interest rates,

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!!!!

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