Refinancing Mistake May Cost Dad His House
Refinancing your mortgage can be a great tool if you want to spend less and prevent a possible foreclosure and forced relocation away from the home you know and love. But what happens if the mortgage broker you use doesn’t actually pay off that first loan? Big trouble.
This actually happened to a Milwaukee resident and single dad, Keon Williams. One day, he came home to find the locks on the house changed and a whole big fight with Harris Bank – the new purchaser of the one-story home. According to Williams and his attorney, the mortgage broker never paid off the original note to Amcore Bank (which was absorbed by Harris Bank in 2010.)
When he refinanced through Central States Mortgage Company about three years ago, Williams went from a 12.5% rate to 6.625%. That company is now defunct. Williams may be forced to move out of this home, which he has been paying on the whole time.
He originally bought the home for $98,500 and took a $128,000 mortgage with no money down. He added a larger master bedroom and another bathroom. He moved in with his three teenage kids and has been paying ever since. He had no idea that the Amcore note was never paid off. This would make his total amount due in the neighborhood of $265,000.
The case is exploring how Central States’ associate, Interim Funding, LLC used Williams’ finance funds to pay off other lenders. When Williams received foreclosure notices from Amcore in 2010, he spoke with Flagler Bank – where he thought his only mortgage was – and they assured him he was on time.
A judge in Milwaukee County stayed the sheriff’s sale of the home to the bank until May 15. Williams has a hearing with Amcore on May 12. That means he may end up being forced to move anyway.
Lance GroomsBack to all blogs
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