Friday, February 25, 2011

The Craziness Just Doesn’t Stop….

Latest file with title problems: The owner got title to Gilmer County property in 1980. After running title we discover-the vesting Warranty Deed is recorded in……. the wrong county (don’t ask how long it to find that out); there is a Quit Claim Deed from the owner to the Owner’s Trust that is missing a witness (and therefore should have never been recorded); a Certification of Trust is recorded naming the Trustees but not saying if the three Trustees can sign individually or must sign all together, so we have to track down the Michigan attorney that drafted the trust Agreement; and finally, (what has made my day) I get a call that says the well may be contaminated and we don’t know if we will close or not?

            Can anyone give me directions to the nearest Drugstore?

Monday, February 21, 2011

Mortgage Companies-Only in America

These are truly some strange financial times. We have seen lenders losing billions of dollars but still paying employees million dollar bonuses. Lenders are foreclosing on properties when the borrowers can bring the loan current, but the lender would rather foreclose and lose money than let it stay with the borrower. Applicants with good credit and collateral are being denied new loans despite their financial worthiness.

I have a “strange but true” story to share. Borrowers with a high interest rate decide to refinance. They make application with the lender that has the current loan on their home (“Lender A”). The owners go through the application and approval process only to be denied. Their denial letter says they are not qualified under current lending criteria.

Being determined to get a new loan with a much lower interest rate, the owners file a new application with a different lender (“Lender B”). After a few weeks and jumping through a few hoops with the new lender and its application and approval process, they are approved for a new loan at the much lower interest rate. Happy with their new lender, their new loan and the efforts that they put in to get approved, the owners close on their new loan.

A few short weeks later, they are preparing to make the first payment on their new loan to Lender B. A letter is received from Lender B which states that they are NOT to make their payments to Lender B. Their new loan has been sold and transferred. Instead, they are requested to please make all payments of their new loan to the new assigned lender…Lender A!

So after all is said and done, they continued to make their payments to their old lender (Lender A) who had denied the refinance of their loan stating they weren’t qualified…but Lender A bought the new loan because Lender B had a good loan to sell! Only in America…