THE QUILL TIP:
Second Mortgage Payoffs
In the past few weeks, we have been informed of two claims involving second mortgages that did not get properly paid off at closing. This topic was the subject of one of our articles a few months ago. Click HERE to read that article.
For a re-cap, remember that during the financial meltdown and subsequent housing collapse, the Federal Government instituted programs to help homeowners who were suffering financially. Often times, the lenders, with pressure from the Federal Government, reworked property owners’ mortgages by lowering their loan amounts, which had the affect of lowering their payments.
In many cases, this principle reduction was added as a second mortgage. Many of the borrowers that received this financial relief were unaware (or they forgot) that a second mortgage was being added as a lien on their real property. Adding to that confusion is that the servicer handling the payoff requests may not understand how to handle payoffs of those liens.
If you see a second deed of trust on the property you have to do everything you can to get the various parties at the closing to understand that the second mortgage very likely has a balance and that their has to be a payoff for it. If you are told that the second mortgage does not have a payoff, or it is included in the first somehow, you should distrust that information. If you push back and are told the same thing, insist on receiving a cancellation of the lien prior to closing the transaction.
This month’s Quill Tip is. . .TRUST YOUR INSTINCTS. You know from your experience that deeds of trust against real property are very rarely forgiven without compensation. Life simply does not work that way. Keep fighting the good fight y’all.
MEET THE FAMILY 2.0
- What is your favorite family tradition.
My family is Italian and on Christmas Eve we celebrate the Feast of the Seven Fishes. We all get together for a fun and loud dinner that usually includes passed down family recipes. At the end of the night we have a good laugh trying to watch each other attempt to assemble the kids’ Christmas gifts.
- What was the last movie you saw in the theater?
I believe it was Lady Bird and it was incredible!
- Who is your favorite band/type of music?
I really like almost all kinds of music. My husband makes fun of me because I can sing along to so many different songs. I can always listen to Dave Matthews Band, Adele, Lionel Richie, Lauren Hill, Al Green and then Bonnie Raitt. I’m all over the place
- What is the one food you could never give up and why?
Peanut butter. I eat it with at least one meal a day and probably have for a lot of my life. Pizza would be pretty hard to give up too. Why? Can you really think of many things that are better?
- What show have you seen on NetFlix or Amazon Prime recently that you would recommend?
The Crown is so much fun to watch! I also just binge watched Big Little Lies on HBO.
There is an intentionally misspelled word in
the e-Closings Article above. Be the first person
to find the word in the article to win a prize!
Email Summer with you guess!