Kestrel wrote:Prof wrote:In a sale to a new owner before the note is paid in full would take place in a title company in most states, and the title company will not close (or should not close) without possession of the orginal note for cancellation and a release of the old mortgage to be filed so that the new one can be recorded as the first lien.
Following this one through to the logical conclusion...
I've got a buyer. The've got their mortgage approval. The title company schedules the closing.
Then MY mortgage servicer, which is a tertiary successor to the original mortgage company, tells the title company, "Whoops... we don't have the note... and we don't know who does..."
(In these days when nearly everything else is reduced to an electronic document, I'd think mortgage transfer records could be handled the same way.)
So am I basically screwed? No note, no closing, pissed off buyer backs out and demands his deposit be returned... And now, instead of closing on the new house I planned to buy in Florida, I'm stuck with the vacant old house back in Port Foozle and trying to find a lawyer to sue the mortgage servicer?
Lovely... Just lovely...
Assuming YOU still have a copy of the note:
Make a copy of it and give it to the servicer. Tell them to go back up the chain and have everyone involved properly annotate it as to the transfers. Once completed, re-sign the note.
Alternatively, take legal action to remove the lien and clear your title. No more payments and you can sell the house.