I am a mortgage broker and I need some advice. I have been helping clients refinance out of bk under the FHA laws of 12 months timely payment. I have a client name Cindy and I submitted her to a mortgage company in Ct in early August. I received an approval with conditions. The Trustee did not sign it until I had all the stipulations filled with the exception of 2 which were ( court approval and payoff letter). I sent my stip sheet to the Trustee to show that the only outstanding onces where the court approval and the payoff letter. The Trustee signed and Cindy got the payoff letter before. I have done this several times with another mortgage company, but always received it from the lender. Most lender won't send a payoff unless it goes through their attorneys. Cindy got one from Flagstar and I gave it to the lender. The lender stated that she had to come to the table with money because of deliquent escrows. Cindy and the Trustee new that this was wrong since she had been in bk for 4 years and the Trustee shows the arrears paid off. They went to court, payoff amount was reduced and the attorney sent a payoff. This payoff is not itemized as the first one was and the lender in Ct. refused it and requested and itemized payoff. The attorney for Flagstar refused to send an itemized one in fear of voilationg the automatic stay law in michigan, which states that you can attempt to collect a debt or make the client look delinquent as long as the agreed payments were made. Keep in mind she was fully approved. I contacted our state finincial and regulations department in the states capitol and was told that the lender was breaking the discrimination law (financial discriimintation) for refusing the payoff. The client is filing a complaint. My question is can the courts step in or the attorney for Flagstar give me something that states that the attorney has to provide a payoff. What's our next step besides filing a complaint. The client needs to get out of the bk and I am sending her to a new lender, but I have to start the approval from the court all over because she has a higher interest rate, different lender which was all listed on the stipulation order to refinance. It is now null and void. On top of this the client has to pay additional attorney fees for an amended J schedule and for the Trusteee to send out new notices to the creditors on the new lowered payment.
Help
Jada
Help
Jada