bank paid off our mortgage by mistake

[alicia57]

What is the name of your state (only U.S. law)? Arizona
We tried to make our home morgage payment and could not because were told that the loan had been paid off. We asked who had paid it off and they did not have an answer. I requested a copy of the payoff to see who paid it off. Abby called me from citimorgage and told me that Citibank had paid it off by mistake. Abby said a attorney was going to call me and that they were going to reinstate my loan with them. What rights do I have. What can they by law do to me. Can I give them my house back since they bought it? Am I required to re sign new documents to reinstate the loan? I've never heard of this happening what are my options if any?

 

[Antigone*]

What is the name of your state (only U.S. law)? Arizona
We tried to make our home morgage payment and could not because were told that the loan had been paid off. We asked who had paid it off and they did not have an answer. I requested a copy of the payoff to see who paid it off. Abby called me from citimorgage and told me that Citibank had paid it off by mistake. Abby said a attorney was going to call me and that they were going to reinstate my loan with them. What rights do I have. What can they by law do to me. Can I give them my house back since they bought it? Am I required to re sign new documents to reinstate the loan? I've never heard of this happening what are my options if any?

They did not buy your house back. This is clearly an error that must be corrected. They may not need you to sign anything. Wait and see. My suggestion is that you review all docs if the bank does in fact need you to re-sign something.

 

[j991]

There is not much that you can do except to keep copies of all documents pertaining to the loan and record the date, time, and who you speak with concerning the mortgage. The courts have determined through various cases that banks make mistakes like everyone else and if the mistake should be known to you then they must correct it without penalty to them or you. Basically, they screwed up, but get to fix it and no one gets penalized for it. You still owe the mortgage.