bank error, early mortgage payoff

[Scuba Steve]

I got a letter in the mail on Friday from the bank's loan department. "Congratulations on making the last payment... it's now considered paid and full..." was the tone of the letter. It's obviously not paid off and I need to get this straightened out.

Has anyone done this before? I'd planned on calling their general customer service number and going from there until I get a real person to talk to. Maybe asking for a copy of whatever check or document shows the loan being paid off if they're insistent that it's not an error? I'd planned on seeing if they'd take some amount off the principal since I'm the one that caught their clerical error and called them up about it instead of acting like I've won the lottery until they figure it out. I'll need to take a day off from work to settle this one for sure. The bank is a few hundred miles away so I can't just drive over there at this point.

[onewhippedpuppy]

Are you sure it's not some sort of scam? I think you have the right approach, because the bank will eventually catch their error then bend you over for any late fees/penalties.

[Neilk]

Just in case this is a phishing type letter. When you call the 800 number listed on your letter, I would first verify that the 800 number listed is in fact legitimate. You wouldn't want to give all your details to a scammer. Is there any way to see your balance online?

[Porsche-O-Phile]

I'd say if you have any correspondence from the bank like this (especially if the words "paid", "zero balance", etc.) are contained in it, have your lawyer look at it. You might have just gotten a very nice early christmas present and I certainly wouldn't look a gift horse in the mouth (but neither would I just ass-u-me that I could stop making payments with impunity first, until I had a lawyer's okay).

[HardDrive]

Originally Posted by Neilk

Just in case this is a phishing type letter. When you call the 800 number listed on your letter, I would first verify that the 800 number listed is in fact legitimate. You wouldn't want to give all your details to a scammer. Is there any way to see your balance online?

+500!!!!!!

Go and find one of your statements and look up the number yourself. Sounds damn fishy to me.

[Scuba Steve]

The letter came on official bank letterhead. It says specifically "paid and satisfied"and the loan number is legitimate. There are no 1-800 numbers other than the real one for the bank on the letter. I don't have a lawyer, but I did look up a bunch of court cases online and the verdict was consistent. Even though liens were removed by the bank it clearly in error. Since the loans were not actually paid off all judgments were against them and they had to pay the bank's lawyer costs.

[RANDY P]

Originally Posted by Scuba Steve

I got a letter in the mail on Friday from the bank's loan department. "Congratulations on making the last payment... it's now considered paid and full..." was the tone of the letter. It's obviously not paid off and I need to get this straightened out.

Has anyone done this before? I'd planned on calling their general customer service number and going from there until I get a real person to talk to. Maybe asking for a copy of whatever check or document shows the loan being paid off if they're insistent that it's not an error? I'd planned on seeing if they'd take some amount off the principal since I'm the one that caught their clerical error and called them up about it instead of acting like I've won the lottery until they figure it out. I'll need to take a day off from work to settle this one for sure. The bank is a few hundred miles away so I can't just drive over there at this point.

your servicing probably got sold, I'd call the lender since you need to know who to pay now for your note.

[legion]

Are you sure it's not a scam?

Don't call the 800 number on the letter, call the 800 number from your loan documentation.

[onewhippedpuppy]

Even though the bank made a mistake, you will eventually pay. It's crap but it's true. Everyone I've known that's been the victim of a bank error has had to pay for it.

[Rick Lee]

Selling the servicing is not the same thing as paying off a loan. BTW, when you pay off a note, don't they send you the deed to the house too? I'd just call the servicing dept. and request a payoff statement if it's free. That's the number they're gonna hold you to.

[pwd72s]

Reminds me of the day we paid our house off. Local branch of the bank couldn't tell us the final payment amount. I berated them a bit...reminded them of their TV ads plugging "home town" service throughout the west. Yet there we were, money in hand, and they couldn't tell us how much the payoff was? Sheesh! Finally got it worked out.

Steve, honesty is the best policy...

[Scuba Steve]

The county is a little slow - last fall when I sold the place I used to live I got the letter from the county releasing the lien a month later. But believe me, the first thing I thought was that it might be some kind of scam until the numbers started checking out.

I've had loans sold before and the letters were totally different - Wells Fargo bought the one for the house I sold last year and the letter from the original bank just gave me a new address and said that since I was already making automatic payments I was good to go. I signed up for automatic withdrawl on this one and have confirmation from that (both letters arrived a few days apart) so I guess I'll find out on 8/1 what's going on for sure. The payoff letter I got in the mail was totally legitimate - loan numbers matched what I had from closing and so did their contact information. This is a little annoying since the problem came up before the second monthly payment was even due.

I'm just wondering how much this might be good for... maybe $5K in principal? It doesn't hurt to ask and I'm probably saving them a ton of time here. Has this ever happened to anybody else here?

edit: looks like Wednesday is the big day. I'll need to take off from work to deal with it thanks to the hours they're open for. Fun times...

[dewolf]

This happened to my sister. Bank sends the letter stating mortgage paid in full. She contacts the bank and they tell her it's 100% paid. She asked all the relatives if any had won lotto and paid it for her, but no one had. They could not find the error anywhere. Sister $40K better off.

[ZOA NOM]

This has bad Kharma written all over it. There are no circumstances under which you will be given a break without paying for it.

[TerryH]

I would call only the number that shows on your monthly statement and let them know that you appreciate them paying off your mortgage, but you need the tax deduction so payments will continue.

[Moses]

Originally Posted by onewhippedpuppy

Even though the bank made a mistake, you will eventually pay. It's crap but it's true. Everyone I've known that's been the victim of a bank error has had to pay for it.

Why is it crap? Why should a bank error relieve you of the obligations of your loan?

Originally Posted by dewolf

This happened to my sister. Bank sends the letter stating mortgage paid in full. She contacts the bank and they tell her it's 100% paid. She asked all the relatives if any had won lotto and paid it for her, but no one had. They could not find the error anywhere. Sister $40K better off.

She still owes the bank $40,000.

[cab83_750]

Get the deed, sell the house, and move to another country!


Kidding aside, straighten it out.....much like a casino "The bank always win."



BTW, somewhat similar, my credit card 'lost' a big furniture charge. 3 years later, they wrote to me and they wanted back interest. I just laughed at them. We finally agreed that paying the amount in full would relieve me of the obligation (so I paid in full).

[Bill Douglas]

I had something like this a few months ago. It took them a month or two but they did sort it out - in their favor. I just did nothing, so if it did turn nasty "I had done nothing wrong". If it worked out in my favor I'd have just stayed quiet and pottered about in my GT3.

[cgarr]

I never got a letter when I paid mine off, I just quit paying.

[RANDY P]

Originally Posted by cgarr

I never got a letter when I paid mine off, I just quit paying.

I wouldn't play around with this. Get the Deed of Trust and everything finalized. If something happens at that bank (say the records are destroyed) you will not have any proof you paid it off. Get the satisfaction of lien and go to the county get their lien removed from your house.

rjp