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Bank released our mortgage by accident??
Old 04-13-2010, 10:31 AM   #1
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Bank released our mortgage by accident??

My husband was checking the county online records yesterday to see if the deed was recorded yet for the gas rights we recently sold on some acreage. It wasn't there, but he did find a surprise. There was a "Satisfaction Piece" filed by the bank that holds the mortgage on our primary residence in January 2010 stating that our mortgage has been satisfied/released. We're only 6 years into our 30 year term.

My reaction is to call the bank and make them fix it. My husband, on the other hand, is a dork. His first instinct is to file bankruptcy while our mortgage is technically "unsecured" and wipe away everything that we owe (which is a lot). The bank will never be notified because the court house doesn't have a record of us owing anything on the house. And since we have the "Satisfaction Piece" he thinks they can't foreclose on it. I think the bank can get this whole mess fixed in their favor...there seems to be some case law out there stating that fraudulent or mistaken releases can easily be reversed.

Anyway, what do you think? I think my husband knows that's I'm right and we should tell the bank, but he's sort of giddy with glee over this. And to think he works in the mortgage industry.....ugh. No ethical dilemma there, eh?
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Old 04-13-2010, 10:38 AM   #2
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Somehow I suspect that it won't turn out as you would like.

I suspect that if the bank can show that no compensation was paid to "satisfy" the loan then your debt can be re-instated as a clerical error.

I doubt that you could game this to your advantage.

But who knows. Stranger things have happened.
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Old 04-13-2010, 11:23 AM   #3
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I would be surprised if you could simply claim bankrupcy without a history of not paying your debts?
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Old 04-13-2010, 11:26 AM   #4
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Another good point.
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Old 04-13-2010, 11:38 AM   #5
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Ask for a refund of all your payments--see what the bank says
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Old 04-13-2010, 11:46 AM   #6
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I can't imagine something like that would hold up in court.

I wonder how much of your mortgage company's annual budget is allocated to "ridiculous clerical errors forgiving mortgages that haven't been paid"? I'd bet not very much.

It's a nice day-dream, though. Very nice!
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Old 04-13-2010, 12:31 PM   #7
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Do it! Let us know what happens.
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Old 04-13-2010, 12:35 PM   #8
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yelnad,

Have you been and are you continuing to make payments on the mortgage loan?
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Old 04-13-2010, 03:46 PM   #9
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The big flaw in this dream is that your debt has not been 'forgiven'...

They made a mistake... the mistake is that they released their collateral on the debt.. this does not 'fogive' the debt..

Now, if you went out and got another mortgage and they filed a lien... they would be superior to your current mortgage... but your current mortgage company can file another lien and then become second...


As for BK.. there are attorney's here, so maybe they know better... but I think you have to list ALL KNOWN DEBTS... since you KNOW you owe this money, you not listing it would mean it would not be forgiven in your BK dream... so you would go through all that and still owe them the money...

Now, if you received the actual NOTE you signed saying it was paid in full.. then we might be talking about something... a release of lien... not..
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Old 04-13-2010, 06:45 PM   #10
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Maybe your bank sold the mortgage to another bank and then released their lien
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Old 04-14-2010, 02:45 PM   #11
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I think the easy answer is "it would be wrong" to game this to your advantage - the same way it is wrong to keep the wrong change at the check-out counter. I'm betting you return mistaken change at the check-out counter. Only difference is the amount. Right is right and wrong is wrong. But, you already know this. So does your husband. I'm sure this will drive your decision.
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Old 04-14-2010, 02:51 PM   #12
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My reaction is to call the bank and make them fix it. . . .
This is what you should do. As others have pointed out, trying to "run with this" is just wrong. Even if you got away with it could you ever be sure it would never be noticed later?

The bank will probably catch it with some kind of audit.
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Old 04-14-2010, 03:23 PM   #13
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There is a word for this idea. It is called "Theft".

Technically, the court would called "unjust enrichment" due to a clerical error.

Good luck staying out of jail.
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Old 04-14-2010, 03:34 PM   #14
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The bank will probably catch it with some kind of audit.
It wouldn't even require an audit. They're still expecting the monthly payment. They'll notice pdq when those stop coming in.

I guess the bank would contact yelnad and inquire about the payment delinquency. Yelnad would say that there would be no payments because the bank gave up the lien. The the crap would hit the fan. It would be fun to watch........

Or maybe not. In this era of foreclosures without recourse and all that, maybe the bank just wouldn't care....... They'd simply tell yelnad that she owes them $X but they no longer had the collateral so, all is forgiven, have a nice day!
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Old 04-14-2010, 06:45 PM   #15
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Okay, we can all quit beating on yelnad now.
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Old 04-14-2010, 06:54 PM   #16
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I get the idea yelnad has been beating on her DH...
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Old 04-14-2010, 06:58 PM   #17
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DH gona be OK?
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Old 04-14-2010, 07:02 PM   #18
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DH gona be OK?
For everyone's sakes I just hope he hasn't been lurking here...
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Old 04-14-2010, 07:29 PM   #19
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You don't pay on a mortgage. You pay on a note. The mortgage is a document that gives the property and all improvement upon it (e.g. the home) to secure the note.

The record may show the lean against the property (e.g. the mortgage) is released, but there is nothing to say that the note (the IOU) is paid...
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Old 04-14-2010, 08:38 PM   #20
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yelnad,
This early lien relese is a birds-nest on the ground, almost like Christmas and your birthday wrapped up together and delivered in April! Grab your piece of the American Dream; take this opportunity to just walk away from that pesky mortgage. Just because you signed a contract with the bank doesn't mean you can't walk on a technicality. Morality and personal responsibility are so overated and old-school, anway. Might really be fun to take out a huge HELOC on the property first, then go out and pay cash for a bunch of expensive toys, new vehicles, maybe take an exotic cruise or two. Make no payments of any kind until the bank(s) discovers their errors, sort out their ownership positions in court and the winner initiates foreclosure. This will take some time, so you will most likely be able live there for free for months (make sure you sign up for government assistance with the utilities, internet, cable, etc. while you are being harrassed by an uncaring, ungrateful bank who is trying to steal your home out from under you from you- maybe longer if you get the media or a foreclosure specialist involved..).This will also give you plenty of time to strip the place bare at your leisure, make sure you pull out the furnace, water heaters copper wiring, plumbing fixtures, doors, lighting, appliances, cabinets, etc.- sell it all for cash on craigslist or ebay, and then lease the place out for use as a meth lab or drop house for illegal immigrants- after all, who would look for either of these activities in your neighborhood? Keep meticulous notes, tape record everything, and and take lots of photos, too, so you can write a book about your experiences and show others how to work the system; it will become a best seller and you can make a fortune hawking it on the talk-show circuit.
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