Amelia couple facing refi gone bad / No one knows who owns the loan, their attorney says
Rather, things went awry when they refinanced their $211,000 mortgage in October 2009 to lower their interest rate from 7.8 percent to 5 percent.
Now, no one knows who owns the loan, said Jason Krumbein, the couples attorney.
The new loan servicer, a government-approved lender that took over the refinanced loan from the originator, says it owns the loan, Krumbein said.
But CitiMortgage, the original lender, claims it never received the payoff from Lend America, once one of the largest originators of mortgages backed by the Federal Housing Administration but now banned by the FHA from doing business.
In my 15 years of practice, I have never dealt with anything this weird, Krumbein said.
Representatives contacted at CitiMortgage said they could not comment. Lend America is no longer in business.
What are the consequences of defaulting on a single payment loan?
Single payment loans carry responsibilities similar to those of any loan agreement. You must pay the balance in full by the maturity date. Since the loan has only one payment, there is no “missed payment” or “late payment.” If you miss the due date, you have defaulted on the debt. This significantly damages your credit. In addition to a drop in your score, you will have a default notice on your credit record for as many as ten years, depending on your state. If you placed any collateral on the loan, you may have to forfeit the collateral as terms of your default.
I Am In The Loan Modification Process
Mortgage Loan Modification Answer:by Loan Modification Expert – Dan NorthYou may have a loan modification on your 1st mortgage but that does not cancel your 2nd mortgage. You still have a legally binding contract to pay back the second mortgage.
Ask That Your 2nd Mortgage Lender Modify Your LoanYou will need to ask that your 2nd mortgage be modified under the HAMP guidelines. If your second mortgage lender signed onto the HAMP Modification program, they should automatically modify your 2nd mortgage once the 1st mortgage was modified, that is, if the investor that owns the mortgage elects to participate in the Second Lien Modification Program (2MP).
Your 2nd Mortgage Lender Could ForecloseIt is possible that you borrowed from a lender that participates in the 2MP program but sold the mortgage to an investor that does not wish to participate. Read more…
Confused By Chase Bank 1st
and 2nd Loan Modification
If these are HAMP modifications you are already past the 3 monthly payment trial and if the modified amounts are still not affordable you can propose that they make further modifications to make the loan affordable. If you have mortgage insurance they can do a partial claim with your mortgage insurer to pay any delinquent amounts on your mortgage which will reduce your payments by not adding that amount to the end of the mortgage, the partial claim amount will be a no interest loan from the mortgage insurance company. Chase can also do a principal forbearance which will lower your payments. You can also extend the length of the mortgage which will also bring down the payments. Each of those options are solutions that lenders generally are willing to do.
I will address your 2nd as that one is cut and dry.