escrow $ used to prepare foreclosure--legal? - Posted by Katie Horton

Real Estate Investing Real Estate Law
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Posted by Sailor on June 20, 2007 at 04:57:06:

I would assume a no-show, which would then mean a default judgment. I’m not an attorney, but I would think for this not to get more convoluted, payments would have to be continued, perhaps into an escrow account.

Once a judgment is entered it is a pain, but the $$$ can be scooped out of a bank account. It’s a tad more complicated than that, but it can be done. I’d be very careful to identify the correct entity for the lawsuit. I’d also get a free intial consultation w/an attny to clarify the basics.

Any, oh yes, I’d be working the other end of the deal by involving the appropriate state/federal regulating agencies.

Tye

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escrow $ used to prepare foreclosure–legal? - Posted by Katie Horton

Posted by Katie Horton on June 09, 2007 at 09:31:32:

Last year the mortgage company erroneously credited my loan with >$2000 from another person’s account in April, pulled it out again in August, then attempted to foreclose in November claiming I had missed >$2000 in payments.

I have receipts and documentation proving timely payment all year. Foreclosure was withdrawn at last minute.

Mortgage company used up all my property tax escrow account $ to pay for their foreclosure preparation fees.
THEY NEVER REFUNDED THE $$. Was this a legal use of escrow funds?

My property is in Oregon, my loan was sold to this firm in TX.

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Re: escrow $ used to prepare foreclosure–legal? - Posted by Rich-CA

Posted by Rich-CA on June 10, 2007 at 08:45:20:

Does not matter if the Co is in TX, the loan has to be handled according to the laws of OR. Contact an attorney. Put together a letter demanding repayment of all escrow funds. Include canceled checks and statements showing payment made as back up. A demand letter may be all it takes to get them off their butts and making changes.

Any chance this was Wells Fargo? I have not known them to be the best and the brightest as far as loan servicing is concerned, which is why I ask.

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Re: escrow $ used to prepare foreclosure–legal? - Posted by Katie Horton

Posted by Katie Horton on June 10, 2007 at 14:21:28:

This is EMC, and I’ve sent 18 RESPA letters w/o receiving a reply.

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Re: escrow $ used to prepare foreclosure–legal? - Posted by Rich-CA

Posted by Rich-CA on June 10, 2007 at 21:16:10:

Tye makes good sense. Small claims in OR is one place they will very likely forfeit by not showing up.

Do their bills have contact info for disputes? You could try the OR agency that deals with consumer fraud or mortgage lending oversight.

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Re: escrow $ used to prepare foreclosure–legal? - Posted by Sailor

Posted by Sailor on June 10, 2007 at 20:41:20:

I’d take them to small claims court.

Tye

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Re: escrow $ used to prepare foreclosure–legal? - Posted by John Corey

Posted by John Corey on June 20, 2007 at 04:45:51:

Sailor,

Assume that the borrower takes the lender to court and they win.
Maybe by default from a no-show or otherwise.

How does the borrower collect or get made whole unless the lender
pays? Can the borrower withhold what they are owed once they win the
cash (offset what they owe vs. what the borrower is owed by the
lender)?

John Corey