More prepayment penalty

[Angela]

I tell you, all you wonderful people have made a monster out of me. How did I ever get along without you??????

 

OK, all mortgage guru's ......our original lender on refi in 2000 was Fremont Mortgage, loan was sold to Countrywide July of 2001. Original Documents state 2 yr prepayment penalty. Countrywide tells us it is 5 years. Who do i need to resolve this with Fremont or Countrywide. I have gotten two different answers. Fremont tells me everything was sold to Countrywide. Countrywide tells me that Fremont was original lender and they have to Fix

 

Who is right???

:twisted: :?:

[BizCredit]

what do your mortgage docs say?

 

also, what state are you in?

 

also, if you need a way out, there are "tricks" sometimes.... like if the house is sold, the prepayment if any may be waived.... if you need this info, after you answer the above, we can get into further detail.

[willtygart]

well the thing is with CW........the 5 year IS a soft pre pay..meaning you sell ye rhome and it is dropped.......the bad thing is if you refi it..even with CW, you will still have to pay the pre payment penalty EVEN though CW is re doing the loan. CW does not systematically put the 5 year on their loans..so I am inclined to say that your original loan officer put it on and in return received more rebate from the lender..........thought I would post and update to you instead of call you so everyone could see.........but I did talk to your lender for you today. :wink:

[Angela]

Thank you for input. I am in California. A service company came to our home, the copies of docs he left with us has 2 years, Next day Title company called said server had forgotten some forms. They were overnighting new papers wanted then signed and return ASAP they also told me to throw away set that server left with us and when all was said and done they would send new our copies. When second set arrived, we did not read. We signed 12/22/2000 and got our final copies 1/13/2001. I kept 1st set and put them away. Wasnt until recent payoff demand for refinance did we learn of discrepancy. First set has 2 years and second set has 5 years. We are not selling, I was told by my BK atty that I need to call mortgage company to see about waiving prepay, but he did not know iif I needed to call original lender Fremont or Countrywide who they sold loan to. Or was the mortgage broker or title company responsible for error. Our docs have so many dates it isn't even funny. Since I have been reading this forum, i have learned so much, I got docs out, I am not a mortgage broker but I see so many problems. We even have 3 different dates of our signature notarized and we only had service at our house twice. I am thinking I should take to Re Atty.

[Angela]

Thankyou Will, when you say loan officer do you mean the mortgage broker who did our loan or someone at Fremont Investment the orginal lender?? Fremont sold our loan to CW. They will not even consider doing a refi. I talked to them. I guess all this mess has fried my brain. Do you mean that even though we got screwed, we are screwed???? Nothing can be done. Not even an effort - I mean if we have docs showing the discrepancy, am I so naive to think that somebody has to accept responsibility??????

 

This is getting worse than I thought

[BizCredit]

Umm.... So you DID sign the DOCS that said 5 year??

 

if NOT... then you can hold their feet to the fire.

 

if YES... uh-oh.....

 

Hire a Lawyer...

 

Other option would be to "sell" the house to friend, etc. (if this is an option and not too many expenses like mortgage tax, etc.)

 

or perhaps... transfer title to someone, then have them refinance?

 

Will can perhaps answer you if the above scenarios make sense, I am not an expert...or a lwayer...

[Angela]

Thank you so much for your help! When they sent the second set of papers to sign, the prepay was blank. I know its pretty stupid. But the first docs we had said 2 years. I trusted mortgage broker. He had done some refi for my 2 sisters. Who would have guessed? Pretty stupid thing to do! I now think that when we sent back the papers they asked us to resign, they must have changed the prepay. That is the only think I can come up with.

[Angela]

Will, would it make sense to put house in sons name? How would it help?

We are in Chapter 13, because CW filed foreclosure and we had to to save our home.

 

I am at a total loss. I am very confused. AG and DFI tell me it is going to take 30 days for their investigation. My time is running out.

[BizCredit]

do you have a copy of the second docs before you sent them back?

 

do you have any proof it was blank when you sent it back?

 

I don't know if you can ask a judge for a priliminary injucnction against CW until the matter is resolved.

 

if the house IS forclosed on, then you win, The house MAY be unforclosed, meaning the sale/forclosure by the court/bank is not valid retroactively

[Angela]

BHMH thank you so much for your help. I am looking for copies. I am in the insurance business and I have never mailed anything without making copies. I am feverishly looking. I do have enough information from the mortgage broker telling us we were doing a 2 yr pp. I had faxed him with questions and he responded to me via fax, outlining the type of loan. My DH did not like this man from the get go, he pegged him as a shyster. I would be very surprised if I did not make copies We did not have enough for closing costs, he put up $3,000 and he had two personal friends, no one we knew, that would loan the balance. We would pay interest only for two years to his two friends His plan was an adjustable rate with a 2 year lock. We would have a two year prepay and than we would refi and pay back all three. When the two years were up Dec 2002, the broker called me about the refi and I told him we were trying to resolve some issues with CW regarding payments not credited from Fremont ( they are the ones that sold our loan to CW) he was furious!

He shouted at me on the phone, told me"borrow the money you are disputing and get it paid, we need to do this refinance to pay (he named his two friends) off". When he realized that we had filed a Chapter 13 he filed a small claims suit for the $3,000 we owed him. My atty told me I did have to go to court because of BK, he called broker and told him he had to withdraw small claims. Well guess what ? he went through with it, and the judgement was in his favor.

 

It wasn't until I joined this forum, did I realize what he had done and now I am fighting to get it removed.

 

Thank you again.....

[BizCredit]

Did you show up in court? or was it a default judgement?

 

I am not trying to scare you, but did you sign anything saying the the oney lent to you was your money? even if yes, i would not worry about it, just checking...

 

Get a laywer, if you can. This is no situation to handle on your own.

 

 

did you find out about selling the house to your son or someone else to get you out of this mess?

[Angela]

BHMH,

 

Yes it was by default because my bk atty told me I did not have to go because we were in BK. Yes we did sign a promissary note.

 

I did find copies of docs we signed for title company, the prepay penalty was blank. I spoke with CW this morning, they are looking into it. But Fremont tells me that they have nothing to do with it now since it wa sold to CW and CW says since Fremont was lender it is in their court.

 

Here I go again. You are right..... I think my best bet is to take this to a RE atty asap. This is to important, let alone the stress for me to handle by myself.

 

Thank you so much for all your good advice