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dj1
Re: Mortgage stories
dj1
HoustonRemodeler wrote:

Bought my first house in 1987, and thought 10.5% was a bargain

It's all relative.

10.5% looks good next to 22%, but doesn't look so good next to 6%.

That's why the subject of affordabilty comes into discussion.

keith3267
Re: Mortgage stories
keith3267
dj1 wrote:

This is quite a story. Did the mortgage company ever tell you why they would not accept your mortgage payments?

After all, you didn't violate the rules that you mentioned, you occupied the house and didn't rent it out, didn't you?

When they saw the address change, they thought I had moved, which was a violation of the mortgage agreement. They did not understand that the address of the house had changed. At that time, they did not understand that RR2 Box 1xx was the same as 12xx Txxxx Rd. Emergency services did not know how to respond to a RR Box number, they needed a street address, so when E-911 went into service, we got a street address. City folk just don't know these things.

I was in the Navy, it was in the 80's and it was common for Mortgage companies to add this clause to military personal because we were subject to being moved on a moments notice. Often the military members would rent their house, if it was in a location that they intended to settle in after getting out, when they got orders out of the area. If a renter got behind, or moved out suddenly and a new renter was not found immediately, the service member would have trouble making the payment. Foreclosure was more difficult because of the Soldiers and Sailors relief Act. This clause helped the mortgage company get around that act.

This was during the period after the Vietnam war and before the gulf war when patriotism was at a low and no one was thanking service members for their service.

BTW, the interest rate was 10.5%, but that was a lot lower than the 13% we paid in Va Beach. Another place that did not thank us for our service, just the opposite. Worse place I was ever stationed.

Mastercarpentry
Re: Mortgage stories
Mastercarpentry

I'll relate a friend's nightmare as I have no story of my own. Though married, his house was in only his wife's name as he had inadequate credit. They made every payment on time for about 8 years when they received a foreclosure notice from a company they did not recognize. They called the local bank who had given the mortgage initially and who their payments were still being made to, only to discover the mortgage had been sold, resold, and resold again several times. The bank was only acting as an agent to transfer payments now and they could not help. After about a year's worth of their lawyer's digging the issue was finally located- somewhere between the many sales of the mortgage a payment had disappeared somehow. And nobody could discover when and where that had occurred. Even though their lawyer and their bank showed positive proof that every payment had been made by them ,the last mortgage owner still refused to drop the foreclosure until one additional payment was made. To counter the forclosure, my friend started making his payments to an escrow account where they were to be held until a judge decided what would happen in a court of law. This was (and is) legal here in cases like this, and the lawyer assured my friend that with the positive proof of payment in hand they would win the case when it got that far

About a year after that impasse my friend got a job offer out of state and took it, and knowing that he was not coming back he closed the escrow account an took that money with him. As there had still not been a court date set this was also legal though they could set a judgement against him in this state for those funds but that would not be executable in any other state. After they moved another 1-1/2 years later the house still sat empty with no further legal proceedings on it. Due to the span of time involved his lawyer said that while the current mortgage holder could still claim deed to the house (and probably would) that since they had not initiated action regards the escrow account my friend was in the clear for taking that money with him, and that at any rate he could not be touched for anything out-of-state. Now with adequate credit built up several more years down the road, my friend is buying a house in the new state in his name without wifey on the paperwork. So for once, the little guy who stood his rightful ground, took on a huge corporation, and won mainly because of their incompetence. Remember that laws vary by location and that none of this is legal advice to anyone anywhere.

Phil

dj1
Re: Mortgage stories
dj1

Phil,

I've heard similar stories about sold mortgages before, these companies are often fraudulent and mange to extract extra payments from non combative customers, who sometimes can't find receipts from years past.

dj1
Re: Mortgage stories
dj1

I once had a 30 yr mortgage with a bank called United California Bank (UCB) - a bank that no longer exists.

At the beginning, I was given an annual payment coupon book, and every month sent my payment, with a coupon via USPS, making sure that all payments were out before the grace period expired (usually the 15th of the month).

One day I got a notice, that a certain payment, made 3 years earlier, reached the bank late. They wanted a late fee. I dug out my checking account statement and rushed to the nearest branch - at the branch I was told that I had enough proof...but the processing department rejected my proof. I paid the late fee under protest, and ever since then paid all my mortgage payments at the different branches.

Imagine a bank doing volume late fee notices, on payments made years ago. What a scam! I bet 900 of 1000 customers end up paying fees.

What a hassle, going from bank to bank, but never had a late payment fee again.

So what was the difference? the date the payment was received, not the date it was sent. And the post office? you can't hold it responsible.

A. Spruce
Re: Mortgage stories
A. Spruce
Mastercarpentry wrote:

After about a year's worth of their lawyer's digging the issue was finally located- somewhere between the many sales of the mortgage a payment had disappeared somehow. And nobody could discover when and where that had occurred.

Back before the collapse of the US economy, when the housing market started tanking, ALL banks were unloading their mortgage loads, loans were being sold off by the thousands, multiple times, with more and more stories like your friend's hitting mainstream news. It came out at that time that if the mortgage holder could not produce the actual paperwork and deed of the property in question, then the home automatically became the owners, free and clear. Turns out, the loans had passed through so many hands that the paperwork literally got lost in the shuffle.

Glad to hear that your friend prevailed and had no sustained damaged from the ineptitude of the banking system.

Mastercarpentry
Re: Mortgage stories
Mastercarpentry
dj1 wrote:

So what was the difference? the date the payment was received, not the date it was sent. And the post office? you can't hold it responsible.

That varies by state. Here in SC that scam was pulled so much that a law was passed regarding it so that now all rent, lease, and mortgage payments are considered on time if they are postmarked on or before the cut-off date. It was also made retroactive with a time limit set for past grievances to be claimed so that it wasn't considered "ex-post facto". Of course that requires the Post Office to deliver them which without tracking and signature on delivery (extra cost to you) cannot be proven. And the PO is not responsible for anything, monetary or otherwise, as they still have that Federal protection in place after they were supposedly cut loose in 71. That didn't help my friend though, but at least now you are immediately recompensed of all your legitimate costs if they fail to prove a claim when the Judge's gavel slams down. That alone has greatly reduced the amount of claims made as the claimant's only recourse is to file an appeal which they don't because of the cost. It's made people a lot more honest here!

Phil

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