QUESTION
Could the mortgage pay off be squashed?
Asked on Sep 29th, 2015 on Landlord and Tenant Law - California
More details to this question:
A pay off for a loan on a mortgage was made. The lender knew the transaction was taking place. The process has taken longer than expected. 60 days to be exact. The refinancer is ready to pay off. The original mortgager is saying they will refuse payoff because mortgagee is 2 mos. behind on payment. Can the payoff be squashed?
2 ANSWERS
Since you are two months behind on the payments, you do owe that to the original lender. It is not their fault that the payoff did not occur on time. Whether they can refuse to accept the payoff of the entire loan depends upon the wording of your contract with them. You could pay them the entire amount and they should subtract 2 months of payments and credit the rest to the balance of the mortgage, leaving the sum equal to the two months left to pay.
Answered on Sep 29th, 2015 at 3:53 PM
They can refuse to take the less than full amount, yes.
Answered on Sep 29th, 2015 at 3:52 PM