Mortgage Refinancing Questions

by Chris Michon from Montville, Ct

Ask Kate: Mortgage Refinancing Questions Hi Kate, The bank won't give us back our money. My husband and I refinanced in April of 2009 with a regional bank. They required an overage (they overborrowed us) to apply to additional principal. Our lawyer sent the check but they never processed it.

**Super Kate Tip: Know your credit score!
Free Credit Score - See yours at CreditReport.com!**

A month later they sold the loan to a nationwide bank who does not require the additional principal payment. Our attorney has contacted the original regional bank who indicated they should send the money to the nationwide bank. We have indicated that we would like the money ourselves so we can pay off my husband's outstanding credit card, and some doctor's bills we owe.

We want to know if the regional bank has any legal right to tell our lawyer what to do with the money held in trust, now that they do not hold the loan any longer?

**Super Kate Tip: Why settle for less than perfect credit?
Consult the Experts to Clean Up Your Credit Report.**

Kate Answers: Mortgage Refinancing Questions

Hi Chris, I can guess how frustrating that must be trying to get back your money. Your question of legalities though would better be addressed by your attorney. There may be contract terms the regional bank is obligated to follow in order to sell loans to the nationwide bank.

However it certainly complicates matters when you are attempting to get answers but don't know which bank is calling the shots.

It's a fact. Mortgages get sold. Along those lines, every borrower is required to sign a Mortgage Servicing Transfer Disclosure which reads in part:

"You are applying for a mortgage loan covered by the Real Estate Settlement Procedures Act. RESPA gives you certain rights under Federal law. This statement describes whether the servicing for this loan may be transferred to a different loan servicer.

"Servicing" refers to collecting your principal, interest, and escrow payments, if any, as well as sending any monthly or annual statements, tracking account balances, and handling other aspects of your loan. You will be given advance notice before a transfer occurs."

Regarding this, here is what to keep in mind. All servicing transfers are initiated in writing. I mention this to warn homeowners about responding to verbal requests for payments due to a servicing transfer. Banks handle requests for monthly house payment transfers in writing.

At the bottom of this page, I have included refinance information. Although I can't shed too much light on your issue between the banks, perhaps other mortgage refinancing questions of yours will be answered as you scroll through the links. Let me know if you have further questions, of course!

Take a moment to bookmark Mortgage Refinancing Questions to your favorites so you can easily return in the future.

If you go to this page, Best Mortgage Rates and Refinancing Advice, you'll have at your finger tips, many letters from readers like you asking about refinance. There is also a section of refinancing stories as told by other contributors.

Chris, please come back and visit often. Help me spread the word by sharing my website with your friends. Remember, all of my information is free!

Best Wishes,

Finding HELP You Need For Refinancing

Refinancing Advice - Your opportunity to get down to earth refinance nuts and bolts from a mortgage insider.

Announcing Kate's Mortgage Information Planner - To save money, get your ducks in a row first.

Are you a homeowner trying to decide if Mortgage Refi is worth the cost?

How To Compare Mortgages - Interest rate, loan amounts, closing costs, cash out, length of term, monthly payments, yes it is enough to make anyone want to toss up their hands.

Real Estate Investor Loans - Three options for investors sandwiched between negative cash flow and plummeting real estate values.

Surprise, it's a barn! Is a Certificate Of Occupancy necessary for your home mortgage refinance?

Refinance With Cash Out - Where is my loan approval?

Save Money Using My Special Refinance Formula "I am a great believer in luck, and I find the harder I work that the more of it I have." --Stephen Leacock

Fresh Refinance Ideas - There are reasons why and why not to refinance promoted by the media, mortgage lenders and financial gurus. The fact is, only you can decide.

What can you do when Refinancing With Bad Credit threatens to derail your dreams?

You don't know it yet but the secrets I am about to share with you have never been explained anywhere else. Don't miss Ask Kate's Secrets To Refinancing!

Low Mortgage Payments For Home Owners - Before you decide on a company, learn how to ask questions and qualify your lender.

Don't be distracted by refinancing lingo. You just need my 10 best kept secrets to Low Mortgage Payments.

Ask Kate About Refinancing - Ask a question to get an answer from Kate.

Refi Stories - A collection of refinancing stories told to Kate by current homeowners.

Refi Ask and Answers - A collection of refinancing questions, each with a individual answer from Kate.

Return from Mortgage Refinancing Questions to Get Your Best Mortgage Rate