After refinancing, I ended up with two loans for the same property

[robbie1]

I started a refinance action back in mid-July 2020 with mortgage company "A". It took three months to complete and the old loan was transferred to mortgage company "B" as a result of a merger between the two companies, "B" being the parent company. The old loan was paid off by the title company, but now I ended up with two identical loans for the same property and same terms and payment. Old company "A" established a loan and a few days later, parent company "B" established the same new loan. Both want payments starting December 1st, 2020. Parent company "B" insists they now control the loan and I should make my payments to them, not "A". "A" seems to think that's ok, but hasn't agreed or told me how they will deactivate the loan or transfer it to "B". "B" says "A" cannot have federal VA loans such as mine on the books which was one purpose of the merger. I am worried about my credit if I pay "A", but "B" considers me delinquent and reports to credit bureaus and other actions. I have emailed and called many times to both companies. No one has agreed to put me through to a supervisor. Should I be more forceful? What else should I do? Do I need to get an attorney involved now before I am actually harmed (in fact, I have been by mental stress).

 

[Just Blue]

I started a refinance action back in mid-July 2020 with mortgage company "A". It took three months to complete and the old loan was transferred to mortgage company "B" as a result of a merger between the two companies, "B" being the parent company. The old loan was paid off by the title company, but now I ended up with two identical loans for the same property and same terms and payment. Old company "A" established a loan and a few days later, parent company "B" established the same new loan. Both want payments starting December 1st, 2020. Parent company "B" insists they now control the loan and I should make my payments to them, not "A". "A" seems to think that's ok, but hasn't agreed or told me how they will deactivate the loan or transfer it to "B". "B" says "A" cannot have federal VA loans such as mine on the books which was one purpose of the merger. I am worried about my credit if I pay "A", but "B" considers me delinquent and reports to credit bureaus and other actions. I have emailed and called many times to both companies. No one has agreed to put me through to a supervisor. Should I be more forceful? What else should I do? Do I need to get an attorney involved now before I am actually harmed (in fact, I have been by mental stress).

What state?

 

[robbie1]

I live in Virginia. The two mortgage companies are in NC and TX.

 

[adjusterjack]

Here's what I would do. Start by looking in your documents that you got when the loan closed and see which company actually funded the loan. Then go to the county land records office and get copies of the recorded documents. Also look for any recorded documents that transfer the loan from one entity to the other. You would probably be safe in paying whichever company is shown on the recorded documents and make sure you get the payment in early enough to be received by Dec 1, keeping a copy of your check showing the account number (you should have gotten an account number in your closing documents). Meantime, don't sit on this. Write and fax a letter to the corporate officers of both companies or one letter if they are the same people advising of the issue and what you are doing.

 

[Mass_Shyster]

No one has agreed to put me through to a supervisor. Should I be more forceful?

Yes

 

[FlyingRon]

You're not going to find mortgage assignments in Virginia land records.

I'm not sure what the problem is. There are not "two copies of the loan." There's one that you signed. If they assigned it, that's a different story. It doesn't even sound like there's an assignment yet. If they told you where to make the payments (it seems they agree on that), be sure to do that and watch that those get credited. You're getting the cart in front of the house worrying about what might happen.

I'd still rattle cages until you get an answer. Get out some paper and send WRITTEN letters in addition to trying to work your way up the food chain on the phone.

 

[robbie1]

Thanks for all the replies. This morning I got a supervisor from the old company to call the new one. The old company is still servicing the loan and I will make December and January payments to the old company. Their system is encoded to let the new company know the payment has been made. Sometime in January, the loan will in fact be transferred to the new company who will send me a letter to that fact along with a letter from the old company and I will start making payments to the new company probably starting with the February 1st payment. Very confusing that no one could explain how this would work in the beginning. If what I was told this morning is true, and it does make sense, the matter will be closed. I hope so.