In Lee county, Florida
I have a circumstance which I'[m not sure how to handle and, not sure if doing nothing at all might not be the best course. It's all related to potential deficiency judgment on an already completed short-sale.
I sold a home through a short-sale, using an experienced realtor. An important element is that the original mortgage was held by Taylor, Bean, Whitaker which, you may be aware, was suspended by the Feds, subsequently declared bankruptcy and handed off its mortgages to various banks and servicers. Mine was given to Cenlar, the potential effect of which may be illustrated by a large number of consumer complaints on the web, mostly based on incompetence, unresponsiveness and loss of paperwork.
I closed on April 1 of this year, based on an approval letter which, after all the calculations of net amount, commissions and fees says "Upon receipt of the net proceeds we will issue a discharge of mortgage to the borrowers, and will release the first lien position that this lender currently holds." As of 3 1/2 months later, I have received no such discharge. Also, I have checked the Lee county records website and see nothing recorded canceling the mortgage or even releasing that lien. No additional payments were mentioned in the letter or at closing nor was any note presented.
My concern is they may try some back-door way of collecting the deficiency, possibly taking the form of selling the debt to a collection company (I understand a lot of this is taking place) since the mortgage still is recorded on the Lee site.
My main question is if there is a standard definition of "Discharge of Mortgage?" To me it means satisfaction or cancellation, as in the usage in "Discharge through bankruptcy."
I also wonder if requesting the Discharge might create problems through a variety of errors, which Cenlar is regularly accused of making. I regard the approval letter as a contract, exchanging the release of the mortgage for a payment, though lower it has clearly been agreed upon. But, since the mortgage still exists on the county site, could not a collector try on that basis?
As an aside, the new owner apparently is trying to "flip" the house. I ask myself if a future title company for such a sale would not balk at it because of that "existing" mortgage.
I have a circumstance which I'[m not sure how to handle and, not sure if doing nothing at all might not be the best course. It's all related to potential deficiency judgment on an already completed short-sale.
I sold a home through a short-sale, using an experienced realtor. An important element is that the original mortgage was held by Taylor, Bean, Whitaker which, you may be aware, was suspended by the Feds, subsequently declared bankruptcy and handed off its mortgages to various banks and servicers. Mine was given to Cenlar, the potential effect of which may be illustrated by a large number of consumer complaints on the web, mostly based on incompetence, unresponsiveness and loss of paperwork.
I closed on April 1 of this year, based on an approval letter which, after all the calculations of net amount, commissions and fees says "Upon receipt of the net proceeds we will issue a discharge of mortgage to the borrowers, and will release the first lien position that this lender currently holds." As of 3 1/2 months later, I have received no such discharge. Also, I have checked the Lee county records website and see nothing recorded canceling the mortgage or even releasing that lien. No additional payments were mentioned in the letter or at closing nor was any note presented.
My concern is they may try some back-door way of collecting the deficiency, possibly taking the form of selling the debt to a collection company (I understand a lot of this is taking place) since the mortgage still is recorded on the Lee site.
My main question is if there is a standard definition of "Discharge of Mortgage?" To me it means satisfaction or cancellation, as in the usage in "Discharge through bankruptcy."
I also wonder if requesting the Discharge might create problems through a variety of errors, which Cenlar is regularly accused of making. I regard the approval letter as a contract, exchanging the release of the mortgage for a payment, though lower it has clearly been agreed upon. But, since the mortgage still exists on the county site, could not a collector try on that basis?
As an aside, the new owner apparently is trying to "flip" the house. I ask myself if a future title company for such a sale would not balk at it because of that "existing" mortgage.
