I sold a home and the title company did not pay off the existing balance of that loan (which they should have); they gave it to me. I am paying the mortgage as agreed, however my initial contract states that I have to inform the bank if I sell it. I did not do that (the title company should have), but as I said, I am still making the payments on a home that I do not own. So, the collateral based upon the loan no longer exists and in essence I am just paying a loan that has no collateral.
I suppose if the bank found out I sold the home and took the proceeds that they could sue me. But there is no "credit jail", so as long as I continue to make payments, can they do anything to me?
2007-10-25 15:44:58 · 8 answers · asked by Boomer 5 in Business & Finance ➔ Renting & Real Estate
To "REALTOR". Yes, I sold the home and the title company wrote me a check for the entire sales price, even though I owed a mortgage balance of $87,000. The house sold for $153,000 and that is the amount the title company cut me a check for. I used the funds to buy another house and pay both mortgages. I am not late on my initial loan and while the title company should have satisfied the loan debt; they did not.
2007-10-25 17:46:12 · update #1
If there was no mortgage, naturally you would get the funds. If there was a mortgage owed at time of settlement, you should have received a check minus the balance remaining. If you got the entire check it error, I strongly suggest you call the Title co and get the pay-off. If you deduct the interest and taxes, it's called fraud, plain and simple.
2007-10-25 16:25:05 · answer #1 · answered by Anonymous · 1⤊ 1⤋
You need to contact the title company and/or the mortgage company.
This situation creates a title problem for the new owner. Your mortgage company has the 1st lien on the property. So when you sold it, the buyer's most likely got a mortgage on it and that would put their mortgage in 2nd position. There cannot be two mortgage companies with 1st liens on the property and eventually, the mortgage companies will figure out what happened.
You are begging to be sued by the buyer, their mortgage company, and your original mortgage company.
You need to clear this mistake up before you lose your new home and end up in jail for fraud.
And the IRS will have a field day with this as well. Can you say IRS Audit !
2007-10-26 01:11:44 · answer #2 · answered by Hatlady 3 · 1⤊ 0⤋
If you recieved all the funds for the sale, then you are abligated to pay the outstanding debt.
Is your new mortgage with the same company, as they would have asked about it all?!
I think you need to inform your first lender as soon as possible that the house is sold, particularly as they will just write to your old address, and the new owners will simply return to sender, which will then sett alarms ringing at their office!
Worse yet is if the new owners use the documents to extend the loan, or commit identity theft!
It you have the funds, sort it out ASAP!!
2007-10-26 04:17:13 · answer #3 · answered by Mikey B 3 · 0⤊ 0⤋
If I understood you correctly, you actually received the funds from the buyer and kept them and you think you sold the property?
How was the deal closed, if the loan was not paid off? How did your lender allow to transfer the property to the buyer, if your mortgage was not paid off?
Something is wrong here. Maybe I misunderstood the question...
2007-10-25 22:55:15 · answer #4 · answered by REALTOR 3 · 2⤊ 0⤋
You say : "But there is no "credit jail""
I say: But there is a fraud jail and since you are on here bragging about it there is a conspiracy to commit fraud jail too.
Good luck.
2007-10-25 23:31:44 · answer #5 · answered by Anonymous · 3⤊ 0⤋
Most likley they can because you are violating several parts of your contract. Most likley they will sue you and take as much money out of you as they can.
2007-10-25 22:54:24 · answer #6 · answered by Lucas H 3 · 0⤊ 1⤋
Ask an attorney.
2007-10-25 22:50:06 · answer #7 · answered by Othniel 6 · 0⤊ 1⤋
fraud.. get an attorney
2007-10-25 23:52:45 · answer #8 · answered by Bob D 6 · 2⤊ 1⤋