GMAC refi didn't remove original lien

J

jbh

New member
Hi everyone,

We just discovered that our current mortgage, which was a refi 7 years ago, has two first mortgage liens on it. GMAC did not remove the first lien when we refinanced, even though they paid themselves off during the refi. How do we handle this? We've been on the phone with GMAC for 2 weeks, and they don't seem that motivated to remove it. Aren't they liable if we don't close due to their mistake?
 
Do yourself a favor: stop calling GMAC.

Whomever the title company was at the time of your refinance should be taking care of this for you. This is a title/escrow issue, not one that the GMAC call center can handle.

My .02c

Soylent Green Is People.
 
Thank you, SGIP..I just hope that we close tomorrow. Escrow has been calling us about this for 2 weeks, and yesterday they said "Well, worst case is that you have to put up the $200K to cover the 1st-1st lien until it's resolved." What?
 
What an odd thing for them to say.

The escrow company should have guided you back to the original refinance escrow and title company. They are the ones who might have mismanaged the payoff and closure of the original loan, and if anything could have indemnified the new lender of any loss should this continue to remain unresolved. This is a paper-shuffling issue and nothing more. Good luck with the closure.

My .02c

Soylent Green Is People.
 
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