Posted by rengel/CA on 3/23/11 11:30am
Msg #377211

Makes you say, "Hmmmm"

http://realestate.aol.com/blog/2011/03/22/couple-owns-home-after-one-payment-due-to-foreclosure-glitch/?icid=maing%7Cmain5%7Cdl3%7Csec1_lnk2%7C51327

Yet another glitch in the mortgage meltdown

Reply by Shoshana/AZ on 3/23/11 12:09pm
Msg #377215

I read that this morning.

I can't understand why somebody didn't catch that!

Reply by desktopfull on 3/23/11 12:38pm
Msg #377221

Re: I read that this morning.

I can't understand how they wound up with the property when the sale was ruled void. One would think that since the sale was void then the property would revert back to the seller. However, I am dealing with this same incompetitent bank Citimortgage. They have sent the mortgage on my deceased sister's house to a foreclosurer attorney before the payments were 3 months behind. When we found out that my brother-in-law had abandoned the house and moved we paid all of the back payments on the house and Citimortgage accepted the payments and then refused to post them to the account. They held the money for a month and then issued a check in my deceased sister's name and mailed the check to my mother who is trustee of the property, the check is non-negotible due to the fact that my sister died in 2002. When we attempted to make the January payment Citimortgage refused to accept anymore payments claiming the house was in foreclosure and we had to pay their attorney fees of $1000.00 to reinstate the mortgage. I'm rather curious to how receptive a Judge in this state is going to rule given that Citimortgage sent the file to an attorney before the grace period for the third payment had expired, they received and accepted payment before they could legally default the loan in Florida and now they are refusing to accept any payments on the mortgage so they can force the house into being 90 days overdue. Plus they converted the 3 previous payments for their own personal use since the check they sent is worthless. In 2004, my mother's attorney sent the a letter informing them that if the house fell behind at all on the payments that they were to notify her immediately, they didn't. The balance owed on this mortgage is a whopping $24,000.00.

Reply by Bravo on 3/23/11 1:07pm
Msg #377233

Re: I read that this morning.

Its been awhile since I was in an escrow office, but if I recall the Trustee's Sale Notification has to be published in the local newspaper three times also. Did no one catch that?

Reply by Bob_Chicago on 3/23/11 2:02pm
Msg #377257

The blue link entitled "check out this list from Law Check "

contained in rengel's original post is very helpful.
Appeared to be accurate as to IL law.
Might be worth keeping for future reference.

Reply by Teresa/FL on 3/23/11 2:13pm
Msg #377260

I wonder if the TC or LO has any liability in this

I read the article this morning too and immediately wondered why the LO was closing the loan himself and if the TC was aware of the borrower's marital status.

Reply by Teresa/FL on 3/23/11 2:17pm
Msg #377263

AND the wife should have known her signature was needed.

After all, she was a LO for another company at the time and any LO should know the laws in their state pertaining to property ownership and marital status.

Reply by Ireneky on 3/24/11 8:40am
Msg #377338

Re: AND the wife should have known her signature was needed.

Read this also, I'm wondering about who was the notary ? Having lived in 2 spousal states. I always ask for marital status of borrower. Just me !!!

Reply by Teresa/FL on 3/24/11 8:45am
Msg #377339

No mention of a notary. Did the LO do the signing? n/m

Reply by James Powell on 3/25/11 10:46am
Msg #377481

Re: I wonder if the TC or LO has any liability in this

Given that this was in Iowa - probably no title company involved. Only state that does not have title insurace - run by the state instead.

Reply by ReneeK_MI on 3/24/11 11:47am
Msg #377369

Gaming the system, doesn't matter if ...

it's a corporation doing it or an individual, it's immoral & disgusting.