Mortgagor Gone Wacky
I bought a house subject to last October and everything has been fine until the seller called me a few weeks ago demanding the escrow money - I explained that (1) all the money paid in the escrow was disbursed to RE taxes, (2) 9 out of 12 payments in 2004 were made by me, (3) if any escrow balance existed, it "went with the mortgage" (I also reminded her I picked up all the late charges etc etc - she was in default when I bought the house) - anyhow....she has now contacted the mortgage company and has requested the mailing address be changed to her new address, etc. -- I know that I SHOULD have written in the agreement that she can not contact the mortgage company and I know that my POA SHOULD have been irrevocable, but - in reality, what can be done when the original mortgagor contacts the mortgage company and mucks things up? Since the house is ablout to go on the market, my partner says I should stop making the payments -- any thoughts?
I have never heard of an irrevocable power of attorney. Is there such a thing? My understanding is that a power of attorney is always revocable if the "grantor" is competent to do so.
keep in mind that you own the property which is securing the note.
If you stop making the payments will only add late fees and posibly foreclosure cost onto the mortgage balance. .
Hopefully you adhered to any foreclosure equity buyer laws your state may have in place so she doesnt unwind your transaction...
I would get this unit sold and be done with it...
BTW this is why i never assume the impound account when I buy subject to... If the borrower wants it they can have it its not worth my time... The checks are always made out the the borrower so let it be.
Good luck
[addsig]
Your contract should protect your interest if everything was on the up and up. Did you have her quit claim the title to you? If she protests then there is a cloud on title that needs to be cleared before either one of you can do a sale and record. Your contract should be enough to show your equitable interest and your receipts!!!! Talk to an attorney for safety.
You gave her 60k at closing and she is complaining about an impound account. LOL. IBUYHOUSEs is right its not worth your time fighting over the little money that is in the impound account. Tell her you will give her the refund check after you sell. You said you gave her FMV how do you plan to sell conventionally and make a profit??[ Edited by theREIkid on Date 01/07/2006 ]
the house was in poor condition and so she got FMV considering its condition - we also changed it from a 2BR 1.5BA to a 3/2 by using part of the garage (the garage had the 1/2 bath which we converted to a full bath) - we spent about $21k in fiix up (that includes labor) - we should clear about $25 or $26k after repair, holding & selling expenses (including RE commission)