‘Zombie mortgages’ catching Utahns off guard
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- เผยแพร่เมื่อ 21 ต.ค. 2024
- Rachel Montes was served a notice on her door demanding $65,000 from a mortgage company, when she thought the account had been settled over a decade ago. With the Utah market looking the way it is now, this kind of "zombie mortgage" situation isn't uncommon.
Utah law and legislation caters to the wealthy and corporate interests no matter how unethical. That's the real story.
Thanking you for this informative reporting piece. Eye opening.
They didn't tell her so they could rack up the intrest. Would be interested to know how much the original loan was.
Got to wonder if a Utah developer is on the money receiving end.
Easy way to avoid this would be to make sure you have both mortgages included in your bankruptcy. I would think that's a no brainer. Who files banko and restructures only one of the mortgages on their home?
Surrender the house. That is what bankruptcy court does to collect assets and pay portions to debts. Bankruptcy should be complete surrender of everything. When it is not a total surrender Chapter 7, be dang careful of Chapter 13.
I'm confused. So how did she not realize the 2nd mortgage wasn't paid off? While I do agree that Utah caters to businesses, is this also a matter of her not doing her due diligence and making sure all debts were satisfied after the bankruptcy?
Yeah, blame it on her. It's the easiest thing to do. Always protect the rights of investors and corporations for they cannot do any wrongdoing.
@@videos_varios5764 It was HER mortgage and HER bankruptcy. How is it anybody's fault but HERS?
@@videos_varios5764: first rule of contracts (and a bankruptsy decree is a form of contract between the creditors and the bankrupt) IF IT AIN'T EXPLICITLY STATED IN THE LETTER OF THE DOCUMENT, IT AIN'T COVERED UNDER THE AGREEMENT. Two seconds of reading through the actual bankruptsy decree when it was effected would have told her she was still on the hook the second mortgage and they wouldn't have needed to send her a single notice of anything in all this time.
Usually w stuff like this they send something in the mail telling u that u owe. Even call you even. But just pop up after 13 years with no notices that is VERY WRONG!
@@pgrberthelot67 I'm giving her the benefit of the doubt but I would think most people would be well aware that they have a 2nd mortgage and what their balance is on that mortgage.
I don't think any of you realize how bad it is for America. That housing has risen from 120K to 450k over 3 years. When will you wake up and realize the economic chains that this pulls on. And how it robs your children of having a future. It also landlocks you if you try to sell, where will you go? After the tax man and realtors take their cut, You cannot buy an equal home. And are under pressure to buy quickly before the prices raise even more.
That's why my parents are literally leaving me their brand new house only when they die as they know it is impossible for me and my gf to afford a house despite making over $100k a year combined unless we spend years not going anywhere or doing anything.
This needs to come to a stop. Laws need to he passed.
You think a Republican lead government in Utah would do anything to protect Utah consumers or residents? HA!
That house is not worth $400,000
It's Utah. Just about anything with four walls and a roof is worth at least that.
That's why you buy title insurance, and show its been paid off.
It should be law that mortgage companies should have to contact customers every month so home buyer can take appropriate action in a timely manner
This is so wrong. Those lenders have responsibility to notify homeowners regularly.
Why not get a loan against the equity and pay the first note?
Request a copy of the Note. It's an original negotiatible instrument and has to be endorsed over to the current holder.
Additionally an Assignment of Mortgage from the original lender should be recorded for each of the companies that purchased the debt.
Hi . Its not your house ,untill you pay the "Banker" loan off in full. You call the lender and ask for a payoff statement, they will email a payoff statement, you then transfer the money, you get a deed document. Then you own your home.
That is just evil people using the law against honest people.
Aren't they supposed to notify her if/when the 2nd mortgage changes hands?
But, she knew she owed it, and chose to forget? Or think it was a gift?
Ok, it does seem skeezy what they are doing but why did she stop making payments on a loan she has? You know you have a loan so why just pretend it doesn’t exist? I don’t understand that.
What needs to stop is adults who are not financially savvy/literate entering into contracts without legal council representing their interests AND providing education. The state need to force consumers be represented by legal counsel and roll that expense into the mortgage (primary /secondary). That woman was well 'over her skis' when she filed bankruptcy and was unwilling to admit she needed help (education). Her desire to stay in her home (natural response) resulted in her not understanding what she was agreeing in terms of loan modification. She was clearly in arrears on the 1st mortgage and they rolled the past due debt into a 2nd mortgage (probably with a balloon payment in the future to help her get caughtup with her debts). She clearly signed contracts but potentially did not understand what she was signing OR she conveniently forgot. If she had a second mortgage, she would have received a tax statement each year on the interest accrued.
She was not able to afford the home when she originally bought it and got into financial difficulty. If she was late on payments where did she think the past due payments and late fees went? Payments not made included taxes and insurance. This is sad but this happens when people are told they need to be a homeowner but are semi-literate financially.
The biggest joke is that run-down house is not worth $400K. She has made no improvements to the kitchen and the exterior shows signs of deferred maintenance. Look at her neighbours homes? These homes appear to not have garages. The increased value of her home will mean higher insurance and property taxes. By the looks of things, she should sell, take the profit, and get an apartment. When this market resets, it is going to be a nightmare for millions.
Roll compulsory legal expenses into a mortgage? Is housing not expensive enough for you?
"If they had sent a piece of paper every month " That's not how it works. It's coupons or direct debit. She tossed her coupon book in the garbage and gave them an incorrect billing address.
Hopefully she'll quit wasting money on paint. Looks like she isn't wasting any on maintenance of the exterior. 🙄
Golly, why didn't they tell her she's supposed to pay the mortgage, she didn't know.
@@willmc42 you're just rude..
Thanks to GOP controlled state house and senate for protecting the rights of the investors and corporations. We, Utahns, we'll continue to vote republican because we love big corporations, because they support traditional family values, right to bear arms, etc, etc. Not to mention that we love lowing taxes on the wealthy while regular folks like you and I end up paying high interest rates. Most likely someone like Elizabeth Warren would be fighting for the rights of the consumers, but we'd rather listen to Ted Cruz recite Dr. Seuss books.
She didn't pay her bill. It's not the fault of any investors or any republicans that SHE didn't pay her bill. Why are you bihticn?
@@oldsoundzWell, the state legislature should do something to avoid schemes like that. It is predatory. I guess you don't get that.
@@videos_varios5764 What scheme? She should have included it in her bankruptcy and didn't. There's no scheme or scam here. She screwed up. You sound stupid.
isn't there a statute of limitations ....
Not exactly, it sounds like the law in that area is specifically to protect the lender, not the community.
Yes. The report said they have tiil 2026 then it is defunct
Predators
Wow
Sorry, ignorance is not an excuse. I honestly feel bad for her but things never just disappear forever. She's probably going to need to file chapter 13 to force the mortgage company to let her make payments. But let's not really tax the rich or 1% hey Republicans?
Blaming the republicans is fun.
Yeah right! Pay your bill
Lol
Are you stupid or something? On second thought, what would anyone think of a damp squid? Go ahead and continue to laugh at people's misery.