Who pays for a lost stock certificate?

[alent1234]

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

https://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/closed-refi-but-no-check-yet-447735.html

Got my refi cash out check this weekend, but it was $1200 short of what the HUD form said it should be. I called the Title Company and they said they are holding it because the stock certificate was lost and a new one needs to be issued.

The stock certificate was being held by Countrywide and they are also the lender after I refi'd.

Am I responsible for paying for this?

 

[seniorjudge]

Do you have proof that someone (besides you) had the stock certificate?

 

[HomeGuru]

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

https://forum.freeadvice.com/mortgages-refinancing-foreclosure-107/closed-refi-but-no-check-yet-447735.html

Got my refi cash out check this weekend, but it was $1200 short of what the HUD form said it should be. I called the Title Company and they said they are holding it because the stock certificate was lost and a new one needs to be issued.

The stock certificate was being held by Countrywide and they are also the lender after I refi'd.

Am I responsible for paying for this?

**A: is this for a sale of a co-op?

 

[alent1234]

no

i bought it in 2003 and refinanced taking a little cash out. Loan closed 12/2008 and some of the paper work was finished in January. The whole time the cash out portion was in escrow.

I called last month and was told that they were waiting on the stock certificate in order to put it into the portfolio of the new loan. Called today asking why the check was for less than the paperwork said and I was told that the stock certificate needs to be recreated because it was lost.

I asked for something in writing to be sent to me and it should take a few days. Countrywide has had the stock certificate since 2003

 

[HomeGuru]

no

i bought it in 2003 and refinanced taking a little cash out. Loan closed 12/2008 and some of the paper work was finished in January. The whole time the cash out portion was in escrow.

I called last month and was told that they were waiting on the stock certificate in order to put it into the portfolio of the new loan. Called today asking why the check was for less than the paperwork said and I was told that the stock certificate needs to be recreated because it was lost.

I asked for something in writing to be sent to me and it should take a few days. Countrywide has had the stock certificate since 2003

**A: sorry, I meant to say is this for a refi of a co-op vs. a condo unit?

 

[alent1234]

refi of a coop in NYC

did some googling and found out how important they are around here due to the fraud possibilities. But I can't seem to find anything about something concrete about who pays to have a new one made up

 

[alent1234]

Do you have proof that someone (besides you) had the stock certificate?

i originally bought the coop in 2003 and Countrywide took the certificate as collateral. I refi'd with Countrywide and the title company ordered it from Countrywide's storage facility in California.

there is no way Countrywide would have funded the original loan without getting their hands on the stock certificate

 

[HomeGuru]

i originally bought the coop in 2003 and Countrywide took the certificate as collateral. I refi'd with Countrywide and the title company ordered it from Countrywide's storage facility in California.

there is no way Countrywide would have funded the original loan without getting their hands on the stock certificate

**A: so they either have it or they lost it.

 

[seniorjudge]

i originally bought the coop in 2003 and Countrywide took the certificate as collateral. I refi'd with Countrywide and the title company ordered it from Countrywide's storage facility in California.

there is no way Countrywide would have funded the original loan without getting their hands on the stock certificate

Do I understand you to mean that the stock certificate is on the way?

 

[alent1234]

the title company said it was lost, so now the bank has to go to my coop board and request a new one to be made up. Due to some criminal activity in the 1980's this is an expensive process in order to minimize the chance of fraud and having the bank or the coop corporation be liable to each other.

Google says it's a fairly common occurrence in NYC and a lot of times the lender pays for it since they are the ones who lost it. But i haven't been able to find anything specific that says the bank pays if they lost the stock certificate. I'm glad this happened now instead of when i sell this place, but i'm not sure how to handle this so i don't have to pay for something that isn't my fault

 

[HomeGuru]

Do I understand you to mean that the stock certificate is on the way?

**A: it appears the replacement one is being sent to replace the lost one and the OP is being charged out of escrow. I guess the response to the OP should be that Countrywide should pay the fee.

 

[seniorjudge]

**A: it appears the replacement one is being sent to replace the lost one and the OP is being charged out of escrow. I guess the response to the OP should be that Countrywide should pay the fee.

I agree and add, "Good luck in trying to get them to pay for it!"

 

[HomeGuru]

Yeah, agreed.

 

[You Are Guilty]

I wouldn't exactly call it "common", but it's not unheard of. And yes, the "rule" is the bank pays for the replacement, since the bank is the one who lost it. (There is no statute on point.) Argue enough with them and they should cough up the dough. In fact, asking why they think they shouldn't be liable is how I'd start that conversation.

I doubt there are any cases on this issue as the cost of a lawsuit (at least one that leads to a published decision) far outweighs the cost of the new certificate.

Good luck.