NovaStar was our loan company and they serviced our loan. We were fortunate enough to pay them off on October 22, 2007. NovaStar cashed the check on October 26, 2007. I have been told that either the payment must be credited or returned in five (5) days by the lender. They did not return the payment. Our loan documents read that a refund will be issued in 15 days after the loan has been paid off.
But, the nightmare began when Novastar took the payment but didn't show we paid off the loan. Instead, they sold our servicing rights to Saxon. I do not believe they had the right to do so as our loan documents indicate the payment is the date received at the correct address. We sent the payment to the correct address and placed tracking on it. We also have a copy of the canceled check. The check sent included an overpayment of almost $3,000.00.
Although the money was there with one or both of the companies, no one paid the insurance on the house. So, our insurance carrier canceled our policy.
Saxon became the servicer on November 1, 2007. On November 2, 2007, I sent in a fax to both Saxon and Novastar asking for a refund. Novastar said all my records were in Texas with Saxon. Saxon ignored. Oh, they placed me on hold and transferred me all over the place, but no resolution.
We had several buyers lined up for the property. But, Saxon locked us out of the house. The company they hired, KTK, broke the steel security door and put a lock on the rear house, as well as the main house (locks). The main house was burned. I called KTK and asked why they locked us out. They told me the mortgage company asked them to secure the house so that it can be winterized. I asked them to fax documentation to me that gave them the right to lock us out of our house that had been paid off. I also asked how they were going to winterize a burned up house.
We went into contract and had a buyer. (We lost a lot on the deal due to delays and with being locked out.) Over and over again I asked for documentation that the loan was paid off. Then, Saxon sent to me a fax that said, that the house was paid off in December by a short sale agreement. Since we were not short on funds when we paid off the loan, we had no reason to agree to a short sale.
Over and over again, I informed Saxon that I did not agree to a short sale. Further, I told them they had no right to add fees or anything else as the loan was paid off prior to November 1, 2007.
At this time, I am looking for a knowledgeable (experienced) attorney to handle this matter. I don't know everything, but I know that something isn't right and our rights have been violated.
I have written to request history documents, refunds, documentation/authorization on the short sale, etc. I will wait 60 days to see what their responses will be. Hopefully, nothing else will go wrong in the interim.