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C

CMoreland

Guest
What is the name of your state?
georgia
i recently refinanced my home and i had a second mortgage. the company agreed to pay off my second mortgage. when everything was done, they gave me a check of 10,000. 2 days later that called and said that i needed to bring the money back because it was for the second mortgage. i had spent most of it because i bought a used car from the auction. i thought that the money belonged to me because they didn't tell me i had to pay the second mortgage out of the check they gave me. since, they have written me a letter stating i took funds that didn't belong to me and if i didn't get them the balance within seven days then they will take legal action. the amount was 8700.00 and i gave them 6000.00 because that's what i had left. i don't have the money and the contract doesn't say anything about the second mortgage. what do i do?
 


C

CMoreland

Guest
georgia

am I legally bound to pay anything by the law.
 

HomeGuru

Senior Member
CMoreland said:
georgia

am I legally bound to pay anything by the law.
**A: of course you are. You are legally liable to pay the entire amount that you owe. Read you mortgage and note that you signed.
This is entirely your fault as it appears that you could not do the simple math.
Add the total balances of the first and second mortgages, together with fees and impounds. Then compare the total with the amount of your refi funds.
Jeez, there is no $10K extra here for you to buy a car at auction.
 
C

CMoreland

Guest
First, I would like you to know I am excellent in math and I also can read. However, my contract says nothing about a second mortgage. The mortgage company said that they would cut a check for the second mortgage the same way they did for the first mortgage. They also told me that my bottom line amount of 10,000 was mine. I don't feel as if this is my error because I didn't cut the check to myself, they did and they gave it to me. So if I chose to buy a car at the auction or whatever I wanted to do with it that was my choice. It is not up to you to determine what I do with my money. You don't know how much I borrowed to know if that was my bottom line or not. Before you try and get smart with me, you could have ask more questions about the situation.
 

HomeGuru

Senior Member
CMoreland said:
First, I would like you to know I am excellent in math and I also can read.

**A: then apparently, you did not utilize these skills
at closing. If you look at your closing documents, specifically the HUD-1, you will see that there was a mistake. Instead of a payoff of the second mortgage, the proceeds went to you.
It is very simple.
***********


However, my contract says nothing about a second mortgage.

**A: so what. A statement that there is a second mortgage does not have to be mentioned in the contract because the mortgage is an encumbrance and secured to the title. If you read your title report, you will see that the second mortgage is secured to your real property. Thus, unless the lender agress to subordinate, this second mortgage must be paid off the give clear title to the new refi lender.
********

The mortgage company said that they would cut a check for the second mortgage the same way they did for the first mortgage.

**A: that's nice. So why did you not verify and confirm with them that they did that? The $10k was not extra money. It was money to pay off the second mortgage.
*******

They also told me that my bottom line amount of 10,000 was mine.

**A: see above.
You never bothered to say. "are you sure. Even with the second mortgage paid off, I still get $10K? According to my calculations, there is no money left over"
*******

I don't feel as if this is my error because I didn't cut the check to myself, they did and they gave it to me.

**A: ok, believe in what you want to believe. You came asking for legal advice and I gave to to you.
********


So if I chose to buy a car at the auction or whatever I wanted to do with it that was my choice. It is not up to you to determine what I do with my money.

**A: Here is your mistake.
The money is NOT yours. The money belongs to your mortgage lender. As such, the mortgage proceeds must be used in accordance with the instructions of this lender. No mortgage lender gives away free money.
*********


You don't know how much I borrowed to know if that was my bottom line or not.

**A: I don't need to know the exact or even the ballpark amount that you borrowed. All I needed to know was that the proceeds from your refinance loan was not enough to pay both the first and second mortgages, if you kept the $10K check given to you in error.
*********

Before you try and get smart with me, you could have ask more questions about the situation.
**A: Your first post gave enough information for me to respond the way that I did.
I did not need additional information.
In fact, you admit on several occasions that there was a second mortgage, the company agreed to pay the second mortgage....
You were just looking for a legal way to keep the money because in your mind, it was not your mistake.
Sorry, no matter what you say or do, your scheme will not work.
You were given the money in error, therefore you owe the money. Case closed.
 

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