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Unique tool aims to save real estate from foreclosure

Can 'bonded bill of exchange order' pay off mortgage?

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The McElroys fell behind on their home loan payments. Their lender, Chase Manhattan Mortgage Co., notified them they could reinstate their mortgage and avoid foreclosure by paying the $7,238 in missing payments and costs. Instead, the McElroys tendered payment to Chase in the form of a "Bonded Bill of Exchange Order" for the full $256,000 amount required to pay off their mortgage. Purchase Bob Bruss reports online. The instructions to Chase, the McElroys said, were to establish a "Personal UCC Contract Trust Account" with the U.S. Department of the Treasury. The bill was a negotiable instrument, should be processed like a check, and sent by certified mail to the Secretary of the Treasury, they said. But Chase refused to process the bill. The McElroys followed up by having "Barton Buhtz, Consumer Advocate" send further instructions to Chase on how to redeem the bill. Chase did not follow up. Chase sold the property at a foreclosure sale for nonpayment. The La Vina Drive Trust was the hi...