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Thu Jan 26, 2012, 01:48 PM

And now..zombie Mortgages! (Turns out, the banks only SAID your mortgage was paid off.) [View all]

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. "

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.) [View all]
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