Ok, I have a dilemma. I’m refinancing a home and I am being told that the seller that sold me the house, put a 55k lien on it, and I WAS NOT AWARE OF THIS!! And now they are saying I owe 55k extra on this house and I just don’t know what to do. I’m trying to contact this seller as we speak, but can someone give me any solid advice? Should I call an attorney?
What is the lien for?
when you closed on the house you should have received a title insurance policy provided by the seller. go to your title company and force them to clear this lien.
I’m totally unclear, as this situation just ccurred today, but it sounds like a mortgage lien(some kinda forclosure i guess). And if it doesn’t get cleared up, I’m gonna be in some trouble, I’m just confused about this whole situation. I was not aware of any liens. When I first bought the home, the title company did not pull up any liens, but as I’m getting ready to close on the refinance (which I had to do unwillingly due to New Century Mortgage going bankrupt and instead of the loan being sold, I was forced to refinance) they pulled the title again and it had this 55k lien put on it and the house and it’s apparently going to be foreclosed.I was literally forced to refinance this home before my first payment was even due. This company called Down’s financial ended up with my loan after I closed, so within 2 months after I closed, I had to go through this closing process through Down’s financial and they aren’t even a company that services loans, they are basically loan officers. This entire situation has been one big headache, and from now on I’m just only doing cash deals, this sh*t has drove me insane. :banghead :banghead
When I first bought the home, the title company did not pull up any liens
When was this?
ready to close on the refinance (which I had to do unwillingly due to New Century Mortgage going bankrupt and instead of the loan being sold, I was forced to refinance)
I am confused here…who told you that you had to refinance?
This company called Down's financial ended up with my loan after I closed
If the loan is transferred and being held by another bank…they cannot force you to refinance.
I bought the house, just this year in March. New Century Mortgage was the original company that financed the home. In May, before my first payment was due, this company called Down’s Financial called me and said, I needed to refinance my home because New Century Mortgage had gone out of business. I’m not clear on how Down’s financial ended up with my loan when they aren’t even actual lenders/bankers. They made me go through the whole process again, and now this issue with the lien has occured. When I asked them how come the loan wasn’t sold, I could never get a clear answer.
Do you have title insurance?
If I were you, I would be contacting an attorney asap.
Does this sound like a refinancing scam to anyone else? Getting a call from some mortgage company shortly after closing your loan and being told you must refinance. Suspicious, but to be safe get an attorney and contact your title company asap.
Does this sound like a refinancing scam to anyone else?
Absolutely!! Once your loan passes the recission period (3 days) you are on the hook to the lender until you pay it off or they call the note. I am sorry to say, It sounds like you got scammed!
I would consult an attorney immediately.
Have you talked with the Seller to find out why he/she put the lien on?
Possible that you are also being scammed about this lien just to get you to refinance more than your original note.
Let us know what your attorney discovers about this situation.
Oh yes it is!
While you are at it (consulting with an attorney), call the banking commission & attorney general in your state and drop this firm in the deep brown stuff from a high height—what state did this happen in, CO?
Regards,
Scott Miller
nobody can force you to refinance, right? Like everyone else is saying, this sounds so shady. Any word from the seller yet?
No question it’s a scam. That takes a big set of you know what to try that with all the crap going on in this industry.
My question is this: Say this is a scam (certainly looks like it), what recourse does the original poster have? Is there any recourse?
I’m not going to bother with telling you what should have happened, I’ll just tell you what did happen—New Century did go under and Duestche Bank assumed their portfolio and servicing rights…
Now that I know where this went down, I’ll start assembling a road map…
Stand by…
Regards,
STEP 1: Contact American Association of Residential Mortgage Regulators (they will advise on who and how to proceed)
http://www.aarmr.org/
STEP 2: Contact the Banking Commission in both CO and MI
CO: http://www.dora.state.co.us/Banking/
MI: http://www.obre.state.il.us/default2.htm
STEP 3: Contact the NAMB (National Association of Mortgage Brokers) and give them a full account of your situation and inform them of your intentions to proceed with legal recourse against the party in question—ask them as a governing body to the mortgage broker sector, if they condone these acts, if they intend to investigate this matter and whether or not this could be handled at this level without the need of legal intervention.
http://www.namb.org/namb/Default.asp
STEP 4: Contact a lawyer (if you can’t swing the retainer, buy legal insurance from Prepaid Legal Services—once you are insured, do it on the cheap)
http://www.prepaidlegal.com/
Now for the bonus rounds:
- List a complaint with the Better Business Bureau
https://odr.bbb.org/odrweb/public/GetStarted.aspx - Contact Dun and Bradstreet and ask them if a complaint can be added to the record of the party in question.
- Contact the Attorney Generals in both states:
MI: http://www.namb.org/namb/default.asp?SnID=1575469381
CO: http://www.ago.state.co.us/index.cfm - Get the media involved (this has the ingredients of a great human interest story that capitalizes on a very visible and public issue)
Good luck!
Regards,
Scott Miller
Thank you sooo much for taking the time. I’m going to hop on this. I’ll let you guys know how it goes.
great post, scott.
I hate reading posts like the one that spurred all these notes. there are so many scams out there it’s upsetting.
I am constantly getting mail from lenders and mortgage companies about loans i have on properties and how they can refinance me cutting my payments in half. Some of them even looks like official loan statements and bills, and some of them reference my current loan number or assessors parcel number. It’s a marketing tactic and they do it on purpose. There’s so much information out there in the public record it’s scary.
I think this problem is only going to get worse, especially with the all subprime lenders closing shop, and so many borrowers out there are uneducated as to their options.
I hope everyone reads these posts and uses this forum as an outlet for answers before being taken by some hack mortgage company.
Great question—the attorney should look to the Ameriquest class action suit of 2006 for precedence and points of similarities…
There is sufficient case history on the books to make an argument for mortgage fraud, but there might be additional claims for coercion, financial hardship, mail and wire fraud (because this was a interstate transaction).
http://www.ameriquestmultistatesettlement.com/
Regards,
Scott Miller