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convington · Aug 18, 2008, 02:04 PM

This is my situation.I took out a home loan about three years ago.which was suppose to be my house and three acres.I went to sell my other house on the same property,and they had that house also.so they had to do a deed of release with the whole land.so my question is they never came back and put a mortgage on my home I took out the loan with.my deed is free and clear.so what can they do.I continue to make my house payments.but now I am getting behind.they raise my payment almost another 400.00 a month.I cannot afford this.so I quit paying,what can they do.they .the title is free and clear

LisaB4657 · Aug 18, 2008, 02:12 PM

First, are you absolutely sure that your current home is not still covered by a mortgage? It's possible that they released only the house that you sold but not your current home.

Second, if they did release your home and the rest of your land from the mortgage, and if you stop paying back the loan, then they can sue you for the balance of the loan. Then they'll have a judgment against you, which acts as a lien against your property. So they can't foreclose but you won't be able to sell or finance your property until the lien is paid in full, including the interest, legals fees, court costs, etc.

Third, it's possible that they can file a lawsuit to force you to sign a new mortgage covering your current home. Most likely the mortgage note contains language that you agree to cooperate with them if there is anything they need to do to make sure that your property is mortgaged as security for that note. If they file this lawsuit and win then they will be able to foreclose.

deedgrabber · Aug 18, 2008, 03:01 PM

Though the mortgage company has made a mistake lifting the mortgage from your entire property instead of the portion they had intended, you still owe the money to them and they will probably be able to successfully foreclose citing the mistake in the paperwork and other supporting paperwork which covers clerical errors. I've seen this many times where a mortgage company loses paperwork or fails to record an assignment, for example, and successfully forecloses.

So, pay the money if you can or sell before it's too late!