Posted by Jason-DTX on December 14, 1998 at 11:28:50:
Yes and no.
In order to deal with the 1st mortgagee you need to have the original borrower sign an “authorization to release information” form so that the bank will talk to you. I also have the borrower sign a “power of attorney” for the property and have them assign the escrow account to me. The power of attorney will allow you to change the address and cash the escrow refund checks. I also use it to cancel their insurance policy in order to place a new policy, since the deed has changed their old policy is useless. The power of attorney will allow you to cash the unearned premium refund check from their old policy. You don’t want the 1st mortgagee to recognize you as a borrower, but you do want them to cooperate with you. If your borrower signs the forms I mentioned then you will be able to deal with the 1st mortgagee.
If you don’t have any way to get these forms on the deal you already did then I’m not sure what you can do. They will accept your payments though, so just keep sending them in. They should at least tell you a payoff amount so that you will at least know the balance.