Jim and Ashley moved into Ashley’s father’s home when he passed away years ago. Even though the mortgage was in Ashley’s father’s name, they continued to make payments to the bank, GMAP, for some time thereafter. Then, they received a notice in the mail that the loan had been sold to NuWay, and they should redirect their payments to an outfit named FCP. Suspicions aroused, Jim and Ashley came in to see us at that point.
The first item on the agenda was to gather up the critical loan documents: the note, mortgage and documents evidencing transfer of an interest in the loan. The Assignments of Mortgage available for public inspection at the County Recorder’s Office raised our eyebrows even more, giving us even more cause to question either NuWay or FCP’s right to collect. We then wrote to each of them, asking them to produce proof of their entitlement to collect. Interestingly, but not surprisingly, the documents which were returned by each company were materially different. Apparently realizing that we were on to them, FCP offered to accept an amount of approximately half the loan balance as payment in full. Even though foreclosure was threatened as the alternative if they refused to accept FCP’s offer, Jim and Ashley decided to stand their ground.
Again, not surprisingly, no foreclosure complaint came since that last communication, almost six months ago. Instead, just two weeks ago, Jim and Ashley brought into our office a letter demanding payment on the loan from yet another party – CitiDevils. Since then, we have set out again on the same path as before, asking for verification of its right to collect. No doubt, the result will be the same as before – no proof will be forthcoming. However, the difference this time around is that the paperwork shuffle has diluted everyone’s ability to lay claim to the debt to the point where we will file a Quiet Title action against all of them, and there is little doubt that our request will be granted. Isn’t it satisfying to know that sometimes banks, like you and I, have to have their paperwork in order?
Note from the author: If you have questions or comments regarding this or any Foreclosure Story article, please visit www.mcgookeylaw.com.
Next week: The Supreme Court Gets It!
Copyright 2013 Daniel L. McGookey