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wastate

Calculating monetary damages of a 60 day mortgage late

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Hello,

A title company has asked me to come up with a number for damages I want for them causing a 60 day late on my and my spouses reports. Any input?

Thanks

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The title company didn't pay off the mortgage when I sold the house, causing a 60 day late reported on all 3 cra's. They want to settle with me and asked what i want. I don't have to be denied credit to have damages in this situation. So far they have offered to refund all of the title fees, the late payment fees and $2K. I know my credit is worth more than $2K.

Thanks

Edited by wastate

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why didn't they pay the note?

 

I would talk to a lawyer versed in consumer and real estate law in your state. Also, I wonder if RESPA can help you get the lates removed.

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further, I would not accept a major derog like a 60 day in exchange for a few thousand dollars. think about what you will ask for in terms of the 84 months you'll have to live with the lates if they remain,.

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I'm not worried about the lates, just want to extract as much money from them as possible. Since I already cashed the check from closing I have plenty of leverage. They are trying to avoid using the insurance. I believe attorneys are a waste of money unless you want to pay a professional liar to google for you. Thanks for the input.

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I think the bigger issue here is it could be a sign of deeper issues with the title company running sort of a Ponzi type scheme.  Crazier things have happened. However, it very well could have been an honest clerical mistake where they just mailed/wired the payoff to the wrong recipient or referenced the wrong account # etc.   Did they provide an explanation as to what caused the delay?

 

With that said, from a legal liability standpoint I was under the impression that you would have to show damages to be awarded funds from it should it go that route, so you may want to see if they can prepare a letter explaining the mishap and perhaps your prior mortgage holder will remove the lates from your credit file and if so I would take whatever $ they offered and consider it a win.  If your prior mortgage company refuses to remove the lates then I would indeed talk to an attorney as you would have more leverage going that route then simply trying to negotiate on your own behalf when they are likely hoping they can just throw a few grand your direction to get you to go away and then you will have to carry the burden of the dinged credit for the neat 7 years.

 

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Yes. I already told them I want an independent audit completed before I settle with them. Either they settle with me or they will pay my first mortgage balance for me and I'll make $50 payments to them. It will take a while to pay it off, about 100 years. I don't do attorneys. I can google just fine. Thanks.

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by all means consult random people on the internets instead of asking someone who know the law. also, since you like the google, did you google RESPA?

 

 it is boneheaded to accept the lates which will report for 7 years and impact your credit and, possibly, insurance costs during that time.

 

if you don't want to seek real remedy, take your few grand from the title company but then I suggest you seek GW from the mortgage lender especially if you have a paper trail with the title co.

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25 minutes ago, hegemony said:

by all means consult random people on the internets instead of asking someone who know the law. also, since you like the google, did you google RESPA?

 

 it is boneheaded to accept the lates which will report for 7 years and impact your credit and, possibly, insurance costs during that time.

 

if you don't want to seek real remedy, take your few grand from the title company but then I suggest you seek GW from the mortgage lender especially if you have a paper trail with the title co.

I can easily remove the lates myself. You should know that, since you filed for BK and have clean reports now  You seem to be here to insult people and leave plagiarized quotes. Quit stalking my threads. I asked a simple question.

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no insult Jethro (apologies to PotO for appropriating the moniker); it is boneheaded to leave money on the table AND accept the hassle and harm of the lates.

 

you got screwed by a title company. you posted here asking what that is worth. my replies suggest a lot more than you seem to think it is worth. but go ahead and settle for a few grand and the lates.

 

I suppose the only answer you want is something like: $4305.45.

 

While you seem inclined to not take responses seriously, at least be careful on whatever waiver/terms you sign when you settle with the title company.

 

Did the title company come across your judgement and did that cause (part of) the delay in settling?

 

who picked the title company? that might be an interesting avenue too.

 

 

 

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29 minutes ago, hegemony said:

no insult Jethro (apologies to PotO for appropriating the moniker); it is boneheaded to leave money on the table AND accept the hassle and harm of the lates.

 

you got screwed by a title company. you posted here asking what that is worth. my replies suggest a lot more than you seem to think it is worth. but go ahead and settle for a few grand and the lates.

 

I suppose the only answer you want is something like: $4305.45.

 

While you seem inclined to not take responses seriously, at least be careful on whatever waiver/terms you sign when you settle with the title company.

 

Did the title company come across your judgement and did that cause (part of) the delay in settling?

 

who picked the title company? that might be an interesting avenue too.

 

 

 

I never said I was going to leave money on the table.  The judgement lien was never recorded so it wasn't paid when I sold my house. The mortgage holder wasn't paid because the title company screwed up.

I didn't get screwed by the title company, my mortgage holder did.

Since you want to continue to insult me I'm going to block you. You are dismissed.

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Im confused as to why someone would come to a public forum for advice and then rebut any help provided?

Of course when you have a negative credit impact due to extenuating circumstances outside of your control, your first line of action is to resolve as quickly as possible with the creditor. Since you mentioned that you are quite aware as to the remedy for the credit reporting - that isn’t your concern.

Just to clarify, you are requesting from the forum a dollar amount that you have experienced in damages in a situation that hasn’t cost you a penny?

I would echo what was stated earlier by another member and accept whatever dollar amount they offer and then begin forming your letters to the mortgage company on the reported late payments.


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35 minutes ago, Gohigherjer said:

Im confused as to why someone would come to a public forum for advice and then rebut any help provided?

Of course when you have a negative credit impact due to extenuating circumstances outside of your control, your first line of action is to resolve as quickly as possible with the creditor. Since you mentioned that you are quite aware as to the remedy for the credit reporting - that isn’t your concern.

Just to clarify, you are requesting from the forum a dollar amount that you have experienced in damages in a situation that hasn’t cost you a penny?

I would echo what was stated earlier by another member and accept whatever dollar amount they offer and then begin forming your letters to the mortgage company on the reported late payments. emoji2377.png


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Nope, going to take full advantage of their screw-up. The first thing they tried to do is sandbag me and cancel the check they gave me.  They asked me how much I want in compensation for the neg CRA reporting.  I'm thinking $60K.  I thought someone might have been in a similar situation, hence my only question. I have everything else covered. Thanks.

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43 minutes ago, wastate said:

Nope, going to take full advantage of their screw-up. The first thing they tried to do is sandbag me and cancel the check they gave me.  They asked me how much I want in compensation for the neg CRA reporting.  I'm thinking $60K.  I thought someone might have been in a similar situation, hence my only question. I have everything else covered. Thanks.

Keep is updated on how quickly they write out the $60k check despite the lack of evidence that they have caused you monetary losses (to this point)… Let us know what you spend your windfall on as well.  🤑

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1 hour ago, wastate said:

 They asked me how much I want in compensation for the neg CRA reporting.  I'm thinking $60K.  I thought someone might have been in a similar situation, hence my only question. I have everything else covered. Thanks.

 

Well, first you have to understand we'd need to grasp where your credit stood before the reported delinquency.  Do you have documentation on credit scores "before and after"?

 

The truth is, if you report was unblemished before and you have a well-seasoned credit profile, a single 60-day delinquency might be of little to negligible consequence.  If you profile was heavily blemished before hand, it again might be of no consequence.

 

A larger impact would be reflected were your credit file relatively thin and of short duration.

 

Second, in quantifying economic damage, it would likely be defined in terms of dollars borrowed x extent to which your interest rate is hiked.  Since impact of a delinquency lessens with time, let's look at a 5 year horizon (in which case, your $60k translates to $12k/year).  Hypothetically, let's assume a 5% impairment.  It would take an average loan amount of $240k to result in a $12k/year interest penalty.

 

Given the facts on the table, my recommended strategy would be to start with a number pulled from your posterior (translate as "hip pocket", if you will), such as your $60k, and negotiate from there.  I think that's as solid a negotiation as you're likely to be able to engage in.

 

Bottom line, I'm not sure your fishing trip here for information is going to yield anything substantive from which to base a damages amount.  Further, if they accept a claim based on hypothetical damages vs demonstrated damages, I'd anticipate that they're working with a number FAR more modest than your $60k.

 

ETA:  Just curious about that "everything else covered"?  Are you saying that you're confident that you can remove the reported delinquency?

 

You realize that, in such a case, you're unlikely to suffer any read economic damage?  Of course, they don't have to know that when you negotiate for damages.  Go for it.

 

 

 

Edited by hdporter

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Lost in all of this is what counsel for the title company allegedly making this offer has done in the way of communications with counsel for the lender.  After all, attorneys speaking with attorneys could very easily have gotten the derogatory mark removed without any damage actually having occurred.

 

But that clearly makes too much sense given the high regard OP holds anyone with a Bar card...

 

I fully expect that we will never hear a true outcome on this but it will not surprise me to see OP get greedy and walk away with nothing...won't be the first time someone was blinded by dollar signs and wound up holding a very empty bag.  I even saw it on a mediation last week where the parties were within about $5K and refused to come to terms (there was about a half-mil at issue)...case proceeded to trial in the family court on the divorce and some very devastating information came to light and the party refusing the settlement now gets NOTHING!  It (greed) has also been known to kill the career of professional athletes...the professional victims come from all walks.

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Worst case scenario we don't settle, they have to pay off the first and then they sue me. I'll let them have a default judgement then I'll pay them $50 a month or BK the now unsecured debt. Sounds fine to me.  I have the leverage. I already have the money so walking away with nothing won't happen.

Edited by wastate

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13 minutes ago, cv91915 said:

 

Yep. not only did they give me the money that should have gone to the judgement holder, they also gave me the money that should have went to the primary mortgage holder.  Bummer for them.

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Apparently it's too late for me to add the following via an edit to my post in this thread:

 

**************************************************************************************************************

 

I appreciate the "likes" conferred on this post.  However, I'm retracting it.  With what's since been clarified by the OP in other responses, and the history highlighted by cv, there's no question that I'm WAY OUTTA MY DEPTH on this thread!!

 

I'm now crawling quietly away, hoping nothing follows me to haunt in the middle of the night ...

 

**************************************************************************************************************

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30 minutes ago, hegemony said:

I just sent a link to the thread to every title company I could find in Washington state.

Your level of pettiness has reached a new high (or low?)...

 

I'm literally in tears laughing right now, hahaha.  

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