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ceo22
Joined: 30 Aug 2005
Posts: 5
|  Posted: Tue Aug 30, 2005 1:53 pm Post subject: 2nd Mortgage question |  |
| I recently purchased a house with a 80/20 mortgage. The 80% mortgage was a fixed rate conventional loan. The 20% mortgage was done as a open line of credit. The 80% loan was processed by one company and the 20% loan was processed by an affiliate company.
However, once we moved into the house, we only received a bill for the 80% loan. We did receive line of credit checks for the 20% loan but never anything on how we apply this line of credit to cover the price of the house. We contacted the company who oversees the line of credit and they are clueless that the loan was supposed to be used to cover part of the price of the house. They are saying it's just an account for our personal use (remember they sent us blank checks). All they have is that we have a unused line of credit for the amount.
The loan officer who originally processed the entire 80/20 loan has never contact us to say hey I wrote the sellers a check for the price of the home but only have a record of 80% of the loan being covered. Where is the other 20% of my money.
We closed on the house on the house 6 months ago and no one has caught this mistake. Are we liable forever? Is it likely this mistake will be caught?
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The Mortgage-Pro
Site Admin
Joined: 19 Jan 2005
Posts: 2248
| | Posted: Wed Aug 31, 2005 12:24 am Post subject: | |
| I have never heard of such a bizarre mortgage incident. The second mortgage company had to provide the funds in order for the closing to take place. Did that loan just not get onto there books?
You really need to get this straightened out or they will come after you for all the missed mortgage payments.
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ceo22
Joined: 30 Aug 2005
Posts: 5
| | Posted: Wed Aug 31, 2005 2:10 am Post subject: | |
| I did contact the second mortgage company prior to the first payment date and even spoke to a supervisor and they had no clue or record of what I was talking about. Do you think I should try to close out the line of credit? Or do you think we should try to refinance and see if it comes up then?
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The Mortgage-Pro
Site Admin
Joined: 19 Jan 2005
Posts: 2248
| | Posted: Wed Aug 31, 2005 2:19 am Post subject: | |
| Have you tried doing a deed search to see if you have two leans your property?
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ceo22
Joined: 30 Aug 2005
Posts: 5
| | Posted: Wed Aug 31, 2005 2:55 am Post subject: | |
| Yes, but it does not show either loan yet. Probably since its so new.
Also, our hud 1 papers does not show a recipient to receive third party payments like it does for our first loan.
Basically, it just shows that the total amount was paid to sellers and we have to pay the 80% to Company A but it doesn't show or reference that we have to pay the 20% back to Company B.
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ceo22
Joined: 30 Aug 2005
Posts: 5
| | Posted: Wed Aug 31, 2005 2:58 am Post subject: | |
| This explanation my be clearer...
Yes, but it does not show either loan yet. Probably since its so new. We closed in February. Also, our HUD-1 paper for the 2nd mortgage does not show the money being owed to the 1st mortgage company. Instead it says the entire amount goes to the borrower.
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The Mortgage-Pro
Site Admin
Joined: 19 Jan 2005
Posts: 2248
| | Posted: Wed Aug 31, 2005 3:08 am Post subject: | |
| Ceo22,
Do you have any attorney? You may want to run this by a real estate attorney. Sooner or later this is going to be an issue for you.
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ceo22
Joined: 30 Aug 2005
Posts: 5
| | Posted: Wed Aug 31, 2005 3:11 am Post subject: | |
| No but I guess i should. Thanks for your help. 
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The Mortgage-Pro
Site Admin
Joined: 19 Jan 2005
Posts: 2248
| | Posted: Wed Aug 31, 2005 4:21 am Post subject: | |
| Good luck!
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