I was trying to refinance my house but now am worried that I have TWO mortgages and that maybe the notary or the title company took the money from the new lender!
I FINALLY went to closing on 5/17. I was told that the loan would fund on 5/23, and all of the interest calculations on the HUD payoff sheet were based on my original lender receiving the payoff on 5/23. It's 5/27, my original lender said they've already gotten in all their mail and payoffs for today and there's nothing there to pay off my account.
I just checked with my original lender - they have not received a penny from the new lender or the title company they used. As far as they are concerned, I still owe my regular monthly mortgage payment come next week Wednesday, 6/01, because the loan was NOT paid off.
I called the new lender and they confirmed that I have a loan with them. I asked when it funded, and they said they couldn't tell me, I would have to check with the title company.
I called the title company (which was selected by the loan broker) - and I can't get a live person - it's just a really basic answering machine to leave a message, which I did - and I haven't gotten a call back from them.
I called the loan broker, who promised to get back to me "as soon as possible". They haven't called back yet either.
The loan was closed in my house by a notary that the title company sent. I do remember she was complaining while she was doing the closing about not having much money, that she's looking for a regular income or a way to have money while having the ability to schedule things around her kid's schedule, etc....
So - two different lenders now believe they have a primary mortgage with me for the same property, no one is getting back to me as of yet and I am getting pretty worried that either someone really screwed something up OR that the someone who wasn't supposed to have the funds now has the money, and that I'll be left losing my house because there is no way I can pay two primary mortgages on it on my income.
Has this happened to anyone else? What steps should I be taking right now and what steps should I be taking on Tuesday when the banks reopen?
Beyond that - if someone finally figures out what's happening.... are there any laws or rules about how long a new mortgage company can wait before paying the previous mortgage company? I was refinancing to SAVE money, not to be owing interest to two different companies concurrently. The new mortgage company said that I have already begun accruing interest; the one that was supposed to be paid off said that even if the funds come in next week, that I'll owe additional interest because the payoff wasn't received when calculated. That doesn't seem fair either - assuming we can find out where the missing money is.
Can anyone tell I'm frantic?
Call the title company on Tuesday morning and ask where they sent the wire to (very few places actually mail out a mortgage payoff, unless the title company is in the dinosaur age), ask for them to email you the wire confirmation. Once you get it, call up your mortgage lender and confirm the wire information is the same as theirs, you'll need to do this all in the morning if it happened the wire was sent to the wrong place and needs to be sent to the new place, as there is a wire cutoff time that is usually in the AM. If you called on Friday they may have just left early for the holiday weekend, tons of people in the industry did.
It turns out that they eventually sent a physical check to my previous mortgage holder. I was informed that in Pennsylvania, there is no law requiring the title company to send the funds over in any specific timeframe - apparently, this particular title company routinely holds payments for a length of time to earn what interest they can.
If I hadn't contacted them when I did, I would have owed a mortgage payment for June 1st to both the new lender and the old lender, because the old lender wouldn't have gotten the funds in time. As it was, the old lender was due another eleven days of mortgage interest.
I put up a fuss and the title company did finally send the old lender a check - but didn't send the extra interest due until both I and my old lender complained.
I'd report that title company to the Pennsylvania attorney state general - in my opinion there definitely needs to be a law that requires the title company to disburse the funds immediately & electronically to the creditors they are paying off, for the exact reason that you just went through.