I had purchased a home for my brother to live in. This was in the fall of 1998. January 1, 1999, my brother had a massive stroke. He ended up in a nursing home and just passed away May 4.
It was a small loan, $15,000 with a payment of $220. Within 2 years the mortgage was sold 3 times. I never missed a payment. In July I mailed the payment to the current lender, not realizing it had been sold again. The check was returned to me with the address and lender to mail the payments to.
I then mailed two payments, June and July, to the new lender, Fairbanks Capital. In late August I was mailed a foreclosure notice demanding over $5000.00. I called knowing this was a mistake, but to my disbelief it was true. The balance at that time was around $11,000. We had homeowners insurance; they put in place force-placed insurance.
Lucky for me I was able to sell the property in October. Two months after the sale, and after the loan had been paid off, people from Fairbanks Capital went to the house demanding the keys. The new owners had to show the closing documents as proof that they now owned this home.
I am still trying to get back what is owed to me: late fees, attorney fees, insurance refund. We just remailed proof of homeowners insurance. Not to mention our credit has taken a very bad hit. I've been in the banking industry 30 years. People that I talk to can't believe this situation. This home was in the Cleveland, Ohio area.
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