Q:Jerry, I recently exercised my 3 day right to cancel on a refinance within the allotted time frame.  When I tried to make my original monthly mortgage payment I was told I could not because the loan had been paid off (after I had canceled).  What do I have to do to rectify this situation?  Also, am I required to pay any fees for canceling? 

Thanks,
Tonya
 

A: Dear Tonya, The problem you are describing is a serious concern that needs to be addressed as soon as possible.  You have every legal right to cancel the transaction within your three day cancellation period but it appears that the would be “new” mortgage company failed to honor your request to cancel and funded the transaction anyway.  Most likely you will soon find out that a new mortgage company is expecting you to collect payments on the loan that you chose not to go through with.  I would advise that you make several phone calls immediately!  First, I would call your originating mortgage company.  Advise them that you cancelled your loan and that they need to request the payoff back from your original mortgage company.  Secondly, I would insist that they call the new mortgage company, explain the situation and request that they cancel your loan.  At the same time get the contact information fro the “new” mortgage along with your loan number.  Make a phone call and send a letter with a copy of the signed right to cancel to the “new” mortgage company.  With the next phone call I would call the title company that handled the settlement of your loan.  Explain the situation to them and ask for their help in resolving the problem.  Finally, check your credit report often.  You can get one free report per year by going to annualcreditreport.com or by calling 877-322-8228.  You will want to review your report to ensure that the “new” mortgage company is not reporting any negative credit information as a result of this problem.  Good luck

Jerry


Jerry M. Frost
President
MidwestMortgage Capital
1227 Fern Ridge Parkway
Suite200
St. Louis, MO  63141
Direct Line 314-787-2911
Fax 314-787-2933
www.midwestmortgagecapital.com