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Desperately seeking advice

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Sally Ziva

Junior Member
What is the name of your state? Indiana

3 years ago my husband and I refinanced our home with a lender in order to purchase a motorcycle. The lender advised that the best way for us to meet our financial goals was to refinance our first mortgage and wrap our auto, a 99 olds Alero and the motorcycle, 97 BMW into one loan. Also the lender advised since we wanted to get ahead, that we should go to an 8 year mortgage to achieve a faster payoff and save money in the long run.
The lender assured us that if we ever sold either vehicle or wanted to sell our house or needed to move to a longer mortgage that all of the above options were available at any time.

To make a very long, drawn out story short; my husband and I did purchase a new home in another town. After our move, we put our 1st home on the market for sale and moved into house #2. We then contacted the lender about separating the vehicles from the home and moving to a longer mortgage until the house sold. They sent an appraiser to the home and when the appraisal came back they said that they could not rewrite the loan because the appraisal came in too low and that the appraiser they had used for the initial loan had been known to “pad” appraisals and was no longer used by the lender. Not knowing what else to do, we sought guidance from the lender. We were then told that since we didn’t live in the home any longer that they could not re-write the loan and that for some reason the vehicles could not be separated. They advised us to try to sell the house as soon as possible and the remaining amount for the vehicles could then be rewritten. Needless to say, we have fallen very far behind on the 1st house’s mortgage knowing all the while the damage to our credit. Through this process, we have spoke with many representatives of the lender – several whom have left the company or moved onto different positions within the lender.

The home has been for sale for about a year when a month ago, we finally got a buyer. The offer was made, accepted and money was waiting at the abstract company for closing. During this entire process, my husband and I were leaving messages with the lender. Once they did return a call, the lender's employee advised that she thought the house was being sold for too little and would need to have 2 more appraisals done for the lender. I explained to her that we were told by another lender office what the home was worth and that they advised us to sell ASAP and that the vehicles could be re-written. After this conversation, The lender would not return our phone calls, would not return the abstract company’s calls and would not give us a release on the mortgage. Messages were left with no avail.

The conclusion is that the buyer then backed out after waiting for almost a month to close. Now the mortgage will surely be foreclosed on; and to boot, last night, a recovery service showed up at our new home and repossessed the car and motorcycle.

We are at the end of our rope and desperate for council.
Last edited:


Senior Member
Once you were foolish enough to wrap depreciating property into your home loan it is no longer two or three loans but one. You, nor they, can separate it out into 3 loans again.

This statement makes no sense whatsoever

>>and to boot, last night, a recovery service showed up at our new home and repossessed the car and motorcycle.<<

Did you not use the funds from the new loan you acquired to pay off these two vehicles when their loans were wrapped into the home loan?

I suggest that since you do not even know what you got yourself into you should seek help from an Atty.

Sally Ziva

Junior Member
Thank you for your reply. You are correct - it was foolish to include autos on a mortgage loan and we are most regretful now.

>>Did you not use the funds from the new loan you acquired to pay off these two vehicles when their loans were wrapped into the home loan?<<

I apologize, but I do not understand what the above statement means. Could you explain?

We will take your advice and seek an attorney.


Usually when you refinance your home and "wrap" in car loans and other debt, you end up with a bigger mortgage and paid off car and other debt. In effect, you cash out your equity in the house and pay off the other loans.

Did the mortgage company have liens on the car and motorcycle? I don't understand how they could but that would be the only way they could repo them.

Sally Ziva

Junior Member
When we did the refinance in order to purchase the bike - the lender paid off the dealership and paid off the car loan, this is partially what I am confused about....those were incorporated into the mortgage. But yes, they did come and take the bike and the car.

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