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Can mortgage lender seek more money after payoff?

How to handle company's mistake
Published on Feb 15, 2007

DEAR BOB: After a mortgage lender has given a loan payoff amount and cleared the title, is the lender allowed to come back months later and ask for more money, saying it made a mistake? --Pam N. DEAR PAM: Presuming that happened to you, if the amount involved is large I would refuse to pay. The lender can beg you for the money. But the lender's only legal recourse is to sue the borrower, claiming a mistake. That would be a very weak lawsuit. Purchase Bob Bruss reports online. I've had this happen to me over small amounts less than $1,000. I just ignored the lender's requests. After one or two letters, which I ignored, the lender "went away." If your mortgage was marked "paid in full" and the lender recorded a mortgage satisfaction or a deed of reconveyance, the lender has no further security. Lenders should live with their payoff demands, which should be correct. For further details, please consult a local real estate attorney. CAN COLLEGE STUDENT CLAIM $250,000 CONDO-SALE TAX EX...

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