Pay Off My Mortgage

by Gina
(USA)

Title didn't pay off my mortgage on time so why is the lender coming after me? Hi Kate, I am hoping you can help me with a big problem. I just refinanced my townhouse but my mortgage was not paid off in full.

I closed on the new loan on July 20th, wired the money for the closing costs on July 21st, well before the July 24th deadline, and was told that the funds would be dispersed on the 24th and my mortgage would also be filed with the city on the 24th.

Just yesterday, July 30, I received a message from the title company saying that when my first loan was paid off there was a shortage and now interest has been accruing on the old loan.

The shortage amount was $182, but now I owe 4 days of interest, over $200, because there was 3.5 days from the time of the pay-off and when the bank notified the title company and another .5 days before the title company cut a check to pay the shortage and stop the interest from accruing. Now I'm being told that I owe nearly $400, that includes $200 of 4 days of interest.

What can I do in this situation. I was not at fault here at all, but feel that I'm now penalized for other people's (as multiple people I have been told are at fault here) error.

Is there anything I can do at this point? I am told that if I don't pay off my mortgage, this amount left unpaid, the title company will put a lien on my property!

Thank you, Gina

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Hi Gina, No two ways to say it, this stinks! A few hundred bucks is a lot of money so I do not take this lightly. But the more time you spend trying to get to the bottom of this, the more mortgage interest you'll accrue.

I'm not an attorney so I can't advise you on legal rights. But here's what I'd do if I were in a similar situation. I'd call the mortgage lender to tell them I am prepared to pay off my mortgage interest left unpaid at the time of closing in return for a written statement that my home loan is paid in full.

Whatever you end up doing, get commitments in writing including the previous account number. Keep a dated journal of conversations, contact names, phone numbers etc.

Take a moment to bookmark Pay Off My Mortgage to your favorites and visit often for more tips. Gina, you can also invite friends to comment on this page or ask another question of their own like you did.

Visit Best Mortgage Rates for refinancing advice based on inquiries from other Contributors just like you.

Best Wishes,

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