We refinanced our house over a month ago and we are still receiving calls from the previous mortgage indicating that the payment is past due. Duh!! My husband called them last night because they sent us a letter threatening foreclosure and he told them that they were paid off a month ago. They put him on hold and came back saying that they returned the payment because it was not enough. He said that that was the amount they gave to the new mortgage company and they said that it was not their fault, that the check was returned and if we didn'tmake a payment they were going to forclose. That is going on?
We called the new company and they said they never received the check back. Can we sue Ocwen (first mortgage) because they are lying saying they returned the payment and that they are foreclosing the house? This is causing a lot of stress.
I do not understand. Please give us some advise.
Thanks.

You need the new company to provide you proof that the check they sent was cashed ( copy of the cashed check) ** you don't know who is lying at this point for sure.

Foreclosing is a long process that involves a court date, so if they file for it, go to court and show them the new paperwork, the new loan and additional info to prove your case.

Once you have the cancelled check you have evidence they received their money.

Someone from the original mortgage company was supposed to be involved in the closing. Who handled the closing for you, ask them to get involved. I doubt that Ocwen is lying, checks take time to work through all of the levels at both companies. You need to closely inspect your closing documents especially in the area that outlines what was due to Ocwen. How was that number derived and by who. Bottom line is they can't foreclose for being one month behind in payment, as you have described.

All of the funds in your refinance were handled by a Title Company. Look at your HUD-1 Settlement Statement, and compare the amount remitted to the old lender by the Title Company with the amount shown on the Payoff Statement. Check with the Tile Company and see how they will resolve the problem.

This doesn't make sense. As Ballenger and Dr D pointed out, this is all handled at the closing. Your new mortgage lender does not want to to get into an hassle on this and their rep at the closing should have checked with the old lender, gotten a payoff balance and issued a check.

Since, your new mortgage lender stands to lose almost as much as you if another lender forecloses, they should be the one dealing with this. If they didn't get the right amount or pay it, that was their fault.

One thing I would check on your own is check with the county and see if the old lender still has a lien against the property. If they don't, then you can tell them where to go (politely of course).

The Title Company who was your closing agent is licensed by the state, is bonded, and I believe carries Errors and Omissions insurance. When they do make a mistake, they usually fix it quickly. Maybe it just has not been brought to their attention. The old mortgage company will not record the Release and Reconveyance until the debt is satisfied. Even if it is, it sometimes takes them forever and a day to record it. Last October I redid the HELOC on my home. The release was recorded two months later and I just received the recorded instrument a couple of days ago. The Title Co is the FIRST place to contact.

Quote:

---

Originally Posted by lrhall41

We refinanced our house over a month ago and we are still receiving calls from the previous mortgage indicating that the payment is past due. Duh!!! My husband called them last night because they sent us a letter threatening foreclosure and he told them that they were paid off a month ago. They put him on hold and came back saying that they returned the payment because it was not enough. He said that that was the amount they gave to the new mortgage company and they said that it was not their fault, that the check was returned and if we didn'tmake a payment they were going to forclose. That is going on?
We called the new company and they said they never received the check back. Can we sue Ocwen (first mortgage) because they are lying saying they returned the payment and that they are foreclosing the house? This is causing a lot of stress.
I do not understand. Please give us some advise.
Thanks.

---

OCWEN is a scumbag company. And I've censored my true opinion.

And, frankly, the mortgage industry is generally sloppy, so this kind of thing happens frequently.

Yes, contact the title company or attorney who closed the refi.

THEY are responsible for paying off all existing liens.

If they have confirmation of the wire transfer, tracking number for the FEDEX, or proof that the check was cashed, be sure to get copies.

Really, the closing agent should be doing the heavy lifting here.

You're going to need to dispute the errors on your credit report once this is over, so keep all of the documentation that you'll have collected in this process.

The closing agent may even provide assistance in this matter, be it financial or legal.