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.

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?

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,

Ask Kate how to get the best mortgage rates
Ask Kate

Finding Help You Need for Refinancing

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

Having trouble refinancing your mortgage due to fallen property values? Go to Special Edition Making Home Affordable Options.

USDA Rural Home Loan Refinance with no appraisal, no credit report, and no debt-to-income calculations.

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 - Yes it is enough to make anyone want to toss up their hands.

New! Ask Kate's secret to reducing mortgage refinancing costs. Home buyers should read this too!

Real Estate Investor Loans - Three options for investors.

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.

Fresh Refinance Ideas - Reasons why and why not to refinance.

Discover my Secrets To Refinancing based on Robin's story

Low Mortgage Payments For Home Owners - Learn how to ask questions and qualify your lender.

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

A collection of Ask Kate Refinancing Questions and Answers II.

A collection of Ask Kate Refinancing Questions and Answers I.

Return from Mortgage Refinancing Questions to Get Your Best Mortgage Rate

Click here to add a comment.

You can also ask Kate about your mortgage at Refinancing Advice The Nuts and Bolts.

Recent Articles

  1. Kate's Mortgage Rate Report August 11: Rates Bouncing Like a Ping Pong Ball

    Aug 11, 16 10:49 AM

    Kate's mortgage rate report for the week ending August 11, 2016: Rates Bouncing Like a Ping Pong Ball
    Mortgage interest rates have been bouncing like a ping pong ball: After last Friday's strong job report began pushing up mortgage rates, the market is now hinting at a reversal, with the 30-year hover…

    Read more

  2. Ask Kate how to avoid unauthorized mortgage rate extension fees

    Aug 11, 16 10:18 AM

    Ask Kate how to avoid unauthorized mortgage rate extension fees
    Ask Kate how to avoid unauthorized mortgage rate extension fees:

    After locking in her rate, the bank sent a Texan homeowner, Laura, notification of several thousand in fees that she must pay in order…

    Read more