Posted by Dimpil on October 17, 2003 at 18:29:35:
Well I got lost in the A & B then I caught on.
But basicaly, seek legal advice.
That said, it seems that they voilated their own clause as did the home owner (A).
loan extension - Posted by saskia richter
Posted by saskia richter on October 17, 2003 at 17:39:36:
A gets mortgage on property (3 years-negative amortization-with rider stating that loan can be extended but only if A is still owner of the property and no other liens are against the property) then sells property to B on contract for deed (5 year pay-off). Contract is recorded, payments send to escrow co. Bank extends loan 3 years later, does not notify B. B pays off early- A files bankruptcy- Bank doesn’t pursue A in bankruptcy court but instead pursues B, filing for summary judgment.
My question is in regards to the Banks extension only- can they extend a loan without doing a title search and if they do what responsibility do they have if things go wrong, as in this case?