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Dragonchilde

Mortgage company screwup?

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Okay, here's the deal. About two and a half years ago, my mother got behind on her mortgage, and the property started moving towards foreclosure. She was giving up, so my husband and I offered to take over. We contacted the loan company, but they were still waiting on the file to arrive in their offices. (The original paperwork, I assume.) They said they'd call us when they got it.

We waited a month, no call. WE called back, still no file. Another couple of weeks, and they said they'd lost it, but could we send some money anyway? Hell no, no account, no money, capiche? So. There it stands. For two and a half years, there have been NO mortgage payments made. The last recorded anything on this debt was in 2001, when the mortgage itself was charged off. (from mom's credit report)

The mortgage company itself has been sold twice, to land in the lap of Citifinancial. Somewhere along the line, they screwed up. After doing a little research online, searching the county records, I can find NOTHING that says they are even a creditor. There are two listings for the previous mortgage company, both of which say canceled, but nothing for Citifinancial.

I'm having the deed faxed over this weekend. If everything's the way I'm thinking (They never filed a deed to secure debt, which is the prevailing theory), then my mother will be coming Monday to file a quit claim to me.

Now. Here's the thing. Has ANYONE ever heard of something like this? Where do we go from here? The mortgage company has obviously screwed up, and now they may have a mortgage with no collateral, which may be why they never filed foreclosure.

EDIT: Okay, I just pulled the most recent online copy of the deed to secure debt. There could still be something else on record, but these records are pretty up to date. There, notarized on July 24, 2000, is the following:

"The debt which this instrument was given to secure, having been paid in full, this instrument is hereby cancelled and the clear of Superior Court of -omitted- County is here by authorized and directed to mark satisfied on record, this 8th Day of July, 2000"

And it's notarized. Twice.

I don't think the other mortgage ever actually filed a deed to secure debt!

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Gee, and I thought my mortgage company was being incompetent when they have forgotten (twice) to pay my property taxes out of my escrow account!

Let us know how this turns out...

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Looks like you are home free.

Maybe instead of your mom deeding the property to you, you should buy it from her at a nominal cost, as those type transfers never seem to be filed incorrectly, but sometimes Quit Claim deed transfers are sometimes.

Charles

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