mortgage company check bounced...

[mommyoftwo]

What is the name of your state (only U.S. law)? PA

I'm actually asking this question for a friend. She just needs general advice, not case specific.

In a nutshell, she refinanced on her mortgage through Priority Mortgage. Wells Fargo recently purchased her mortgage from Mortgage Company A. Apparently, Priority mortgage's checks to my friend and Mortgage Company A have bounced. So, in essense, she is told she owes two mortgages. She currently has the Atty General and the FBI involved, with no one really giving her any advice. Mortgage Company A has told her that she needs to continue paying them and Wells Fargo tells her the same.

The atty general tells her that she needs to pay Wells Fargo her mortgage payment (which she is doing). Her question is... can Mortgage Company A foreclose on her home? She has never been late on her payments and Mortgage Company A is telling her if she doesnt pay them, they will foreclose. All companies are away of Priority Mortgage and what they have done, but they all still want their money.

Could she call the local courthouse (sheriff's office? recorder of deeds) and find out who to pay? If everyone is telling her "pay me pay me, its me you owe", how does she find out who TRULY to pay?

Also... she asks for any advice on anyone else to contact (state legislature even tho atty general is involved) to help her with this.

thanks!

[nextwife]

Who was her closing agent? Who disbursed the closing funds when she refinanced? Is your state a "good funds" state (We have this in WI) in that the title company disbursing the funds at closing is FIRST required to have GOOD Funds so this sort of thing cannot happen? Might a title company who closed it have done an "insured closing" or provided an insured closing letter to the refi lender? Start by working backwards through the closing on the refi to see if any of the closing agents may have liability for disbursing without good funds.

[mommyoftwo]

Originally Posted by nextwife

Who was her closing agent? Who disbursed the closing funds when she refinanced? Is your state a "good funds" state (We have this in WI) in that the title company disbursing the funds at closing is FIRST required to have GOOD Funds so this sort of thing cannot happen? Might a title company who closed it have done an "insured closing" or provided an insured closing letter to the refi lender? Start by working backwards through the closing on the refi to see if any of the closing agents may have liability for disbursing without good funds.

she said she doesnt know anything about "good funds" and she unfortunately doenst know alot about closings/titles/deeds, etc. She knows her and her husband bought a house, were approved for the loan, paid it faithfully, etc.

Homecomings financial (Mortgage Co. A) owned the home. She went to Priority Mortgage (a broker) to get the equity out. Priority was also dealing with E-mortgage. Homecomings Financial was selling the mortgage to Wells Fargo. Every check that Priority wrote (to my friend, to Homecomings Financial, etc.) bounced. What all money that passed through Priority's hands, she doesnt know. Wells Fargo's check is the only one that did not bounce, and they are insistent that they are the ones who she should make her mortgage payment too. Homecomings is telling her that, since Priority's check bounced, THEY are still the ones who owns her mortgage and that she should pay THEM. She cant pay both. The attorney general seems confused (called her today and asked her if she's heard anything new). She's getting absolutely NO direction. Private atty's say let the Atty General handle it.

She wants to know that if she pays Wells Fargo (thats who the atty gen. told her to pay), how does she know FOR SURE that Homecomings cannot initiate foreclosure proceedings. Is there a way to tell who exactly owns the mortgage, Homecomings or Wells Fargo? She is worried if she pays the wrong one, she will lose her home.

How can you make one or the other prove that they have the original promissary note? (is that what determines who owns the mortgage?). She's confused. The atty general process will take a very long time, and if she gets in the hole with her mortgage, shes worried she will never dig out.

[nextwife]

Who CLOSED the last loan when she obtained it, the one is which the disbursing funds bounced? Who was the closing agent for Priority Mortgage? The title company, a closing attorney? Who wrote the bad checks? Was there a closer hired by Priority?

She needs a REAL ESTATE attorney. Now. She doesn't know enough to untangle this herself. If the New mortgage lender failed to pay the "consideration" that was supposed to be exchanged for the mortgage, her attorney may be able to challenge the validity of the new mortgage. He may be able to determine if it was the closing agent/title company whose funds were no good, or the mortgage company. Anyway, she needs to obtain a RE attorney who is well versed in the logistics of mortgage company closings. Maybe a former title company attorney, or someone with that sort of background.