Ok I’ve been wanting to share this story for a while , I think after the housing meltdown we all heard about banks who would foreclose on the wrong homes or change the locks on a neighbors home , etc.
Well it happened to me a few years ago , and I’m still dealing with the repercussions to this day. The story went like this - there was a fire at one of my rental properties , tenant moved out , my insurance paid the repair money to my lender due to the mortgagee clause . The repair money was larger than the mortgage balance .
I asked my lender to pay off the loan , and send me the excess , but they wouldn’t do it unless I signed all kinds of documents agreeing to repair the home , providing them estimates , proof the work begun, agree to indemnify them from any claims , etc.
Well of course I don’t agree to that . then they send me a notice of default , despite the fact they are holding more money then required to pay off the loan and I’ve told them to pay it off and send me the excess .
Fast forward through a bunch of lawsuits I can’t really detail , but l Get my property back in my name only , and some $$ for my troubles .
To add insult to injury , they then report to the credit bureaus I was in foreclosure . Not a good thing to have on your credit report when you invest in RE. Sue them again , get another judgment . Let’s just say at this point they’ve already spent close to the cost of the mortgage balance fighting me .
Last year , they decide to re-report my loan is in foreclosure . Almost 5 years after this all occurred . This time I’m going after not just the lender , but the credit bureaus as well for re reporting a debt they knew was not valid . So this is the saga that just doesn’t want to end .
Anyone else have Something like this happen to you ?