Refi questions

[tcallison]

What is the name of your state? Utah

In Nov 2006, my older sister and I purchased a house. I am now getting married and wanted to refinance to a fixed rate and with my fiance. Here's the problem: The paperwork that the title company that closed the paperwork on, same as my copies and the papers submitted to the county, do not list a prepayment rider anywhere in the documentation. The current lien holder has a completely different set of paperwork including the prepayment rider, a different federal truth in lending act, and there is a listing of the additional rider in the note. Who's at fault and am I liable for those documents? I only remember signing an updated HUD (2 pages) after the initial close. I don't remember signing another 30 pages of paperwork. Who should I be bothering to figure out what's actually going on? (BTW the prepayment penalty is about $7600, so not paying that would be great!) Thanks in advance for any help

[rlolsen77]

As always a common reply here: talk to a lawyer

Sounds like the title company in the one at fault here IF the lien holder has another set of paperwork. Their role in the process is to be the mediator between the borrower and the lending institutions. Often the lenders have a website you can utilize for to download PDF versions of the original loan docs (additional santity check).

Were you planning on having your sister removed from the loan? It might be easier (or neccessary) to have a quit claim filed that relieves her from title on the property; and then refinance with your significant other.

as a side note: for your own protection I would wait to transfer title/mortgage until after you were married and the other person isn't just a fiance.

[tcallison]

Thanks for the quick response. When I was talking to the loan officer, we were just going to take my sister off (quitclaim) at the time of closing. I've got 8 days before the wedding, so I guess we can wait till then to actually close, but this hassle has moved me past the 30 day lock (which means I can pay money to keep it locked in). I can't get to my documents online but I see if they can fax it over. Thanks again!

As a side note, I guess as long as the prepayment is all interest then it's tax deductible which might not be so bad I guess....

[Kitty61mom]

Without giving any details, call the title company that closed the loan and request a complete copy of all the signed documents. Then review them. Remember, mortgage lenders are typically not required to record the note or any of it's riders. That being said, it would prudent for them to also attach this type of rider to the mortgage also. A recorded document is always more beneficial to lenders in cases of foreclosure.
Hope this helps