Prepayment
I have experienced a loan servicing nightmare. The lender feels "horrible" about this. I have asked to be released from my loan so I can refinance my house with an institution that will pay proper care to my loan. I have a prepayment penalty on my loan that will cost me about 3,200 dollars. My bank tells me they would "love" to do this but they are bound by federal law to not do this. They have sold my loan but still service it. I see a few ways they could do this. Is it really against the law for them to waive my penalty?
I am not so worried about what the documents. I am curious if the bank is bound by federal regulations to not change the terms of the contract.
Request that the bank stop the impounds and pay your taxes and insurance yourself - the bank MIGHT be able to do that. This is an example of why I never do impounds on my bank loans - I pay those costs myself (I avoid all impounds).
Much to my surprise the bank called me today and released me from my mortgage and waived all penalties!
Happy ending! Love that...
They must have figured you had grounds for legal action.
Chris
Quote:On 2008-01-17 13:18, tigerpilot1995 wrote:
Much to my surprise the bank called me today and released me from my mortgage and waived all penalties!
Why would they release you? Did you pay off the loan?
sue the city for elder abuse.
Other than a contempt of court charge, that is the only thing that I see that would land him in jail.
[ Edited by LynLinz on Date 01/22/2008 ]
Crazy. I think the proper course of action is for them to take the complains to their inspector who "missed" these items on the report.
If this took place in CA and I were them I might argue that you failed to disclose material defects in the home, and that performed (poor quality) RENNOVATIONS OF THE PROPERTy.
Yes they can sue, unless you both agreed to mediation in the purchase agreement.
I sued once, and was pretty much laughed out of small claim.
Turns out I was in the direct landing path for Moffett Field (which lands noisey military planes) and that my water presure was off. It was82 PSI at feed from city and <30 on far end of the house a basic galvinized pipe problem.
As for the airport, there was a one page fore that I signed that basically said "there are airports in the area, and planes are noisey"
BOOM there went my 1st complaint
Mr. Mazur did you have an opportunity for a home inspection?
Yes.
Boom on the 2nd claim.
Regardless of the merits of the case......If you do not answer the complaint, they will no doubt enter a default judgment against you, which is what they are counting on.
So, you must answer. The way I self-answer complaints is to repetitively reply "The defendant hereby denies this allegation." for each appropriate count.
When the allegation is irrefutable, as in my name, address or the fact that I sold them the house, the answer is "The defendant hereby agrees with the allegation."
Then the ball is in their court and they have to spend money to pursue legal action or go away. They usually go away.
[addsig]
Just wanted to post a quick update. We went to court this morning and the judge ruled in our favor. There were two major points that we made:
1) There was a mediation clause in the real estate contract the the buyer did not follow. The judge told him that his agent should have advised him of this.
2) The burdon of proof was on him. He had no way to prove that we knew any of the items would break or that any work preformed for us was not good.
The homeowner called in a witness to say that the liner in the shower was not installed properly. You could see from their photos when it was torn apart that it may not have been done correctly. We payed someone to do this work and had no idea it was not done correctly. The judge agreed that we did not hide this fact and could have had no knowledge that it was not done correctly.
What a relief.
The judge ruled that we owe him nothing.
NC is an attorney state. There are no title companies running settlements.[ Edited by NewKidInTown3 on Date 02/03/2008 ]
Thanks- I lost all my cheat sheets of state requirements when I left my last job!
Quote:
On 2008-02-03 23:12, NewKidInTown3 wrote:
NC is an attorney state. There are no title companies running settlements.
<font size=-1>[ Edited by NewKidInTown3 on Date 02/03/2008 ]</font>