Posted on 04/01/2019 8:20:05 AM PDT by MissEdie
Freepers, whenever I have needed wisdom and great help ya'll have always come through! I'm hoping ya'll can help a dear friend of mine who is 15 days away from closing on her house when an issue arose. Bottom line is they need a letter from Chase Mortgage certifying their house/credit is in good standing to sell, but they are refusing because they are saying they have 2 mortgages on their house-but they don't. Even their credit checks stipulate one outstanding loan and it shows them in good credit. Apparently back in 2004 they refinanced their mortgage, they used the money from it to pay off the pre-existing mortgage. They are still paying on the balance from the 2004 refi. Chase is telling them something happened from the 2004 refi and they have them listed as still having 2 mortgages. When they attempted to contact the lawyer's office who handled the 2004 refi, they are no longer in business. All they need is a letter saying they do not have 2 mortgages, but Chase is refusing to write one for them. They are supposed to close on their home in 15 days and their buyer is getting antsy.
Three should be a lien release from the first mortgage.
Find another lender
If there is a 2nd mortgage it will be recorded at the clerk of court for the county where the property is located. There will also be record of any satisfaction of mortgage. That would be the place to start.
I have never heard of a seller needing such a letter. Is this a new thing?
Search the local counties webpages for Clerk Public Records. Search for your name for all documents recorded with your name on them.
This is the job of the title search company, if they do there job. They might be cutting corners demanding something from you, instead of doing their job.
The other mortgage could be a line of credit they aren’t using. They should get more details from Chase.
my advice to you is to not seek legal advice on an internet message forum. seriously.
really, really bad sh*t could happen if you get this wrong. tell your friend to call someone with a license.
The all-important paper trail of the re/fi (lien against property)......and the payoff.....is in the files of the community in which they live.
Go to the the community’s Hall of Records to get this information.
Sounds like this person is the seller. The buyers attorney gets title insurance.
**Three should be a lien release from the first mortgage.**
Correct ,, or a “satisfaction of mortgage” from the prior lender that was paid off ... it should be recorded in the public records...
They can contact the lender or check with the registrar of deeds or court clerk.
The real estate agents involved should have legal teams at their disposal if it is a large company ,, they can dig this up...
Exactly. Doesn’t she have an attorney representing her in this transaction or is this one of those states that close without attorneys.
Just get a Title Insurance company on it. This is what they do for a living.
I am a mortgage lender and own a real estate company. This comes up all the time.
All they have to do is go back to the attorney/title company that refinanced their last loan (2004) and get record of the filed satisfaction of mortgage.
Also, like another poster stated, it could also be a HELOC or creditline that is not being used with a zero balance but is a lien on the property for the credit limit.
Chase will respond to the title company or attorney so it is a good idea to have them call on thier behalf as a third party.
That happened to me back in the 1980’s. There was a mechanics lien on my house for a fence that had been installed (and paid for) many years earlier. I had to provide proof that I had paid off the fence company in order to have the lien released. It had been the fence company’s responsibility to do this, but they never did. It may involve a visit to your town’s registry of deeds, with proof in hand.
I hope that my experience may be a help to you!
The escrow usually finds a title insurance company who does that kind of research. Find out who is the title ins company and talk to them.
Doesn’t mean the title company cant hassle the seller for info
Indeed.
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