The loan servicing department has refused useful assistance removing an invalid lien against property. Email communication blocked & Ph.unresponsive.
Back in September I applied for a credit loan from my bank. A credit report was made and a lien from 1993 surfaced that was previously unknown. The loan was put on hold until the lien could be resolved.
Further investigation revealed by documents from the County recorder that the lien has no valid basis because First Calif. transferred their interest in the property in 1994 with a Corporation Assignment of Trust to another mortgage company.
The property interest has passed ******* a number of financial institutions from 1994 to 2009 when I finally paid off the last mortgage holder (GMAC), all without any reference to the 1993 lien that First Calif. holds.
I have presented sufficient documentation from the County Recorder including the input of First American Title Co., to First Calif. with the hope of persuading them to remove the bogus lien that is blocking the use of the properties assets.
The loan servicing department has refused to take any action in the matter, claiming that they need me to supply them with a 'new document' for them to perform on. The problem is that the servicing and legal department have been unable to identify the type or name of the document they require.
The attitude seems to be that 'this is my problem' and not First California's. Whereas the issue stems from First Cal's failure to erase the lien back when their interest was first passed ** to another financial institution.
In spite of all the documental evidence and reasoning I have presented, First Calif. has remained entrenched in their position that they can do nothing about the problem until I come up with some as yet undefined 'new document'.
The title company (First American) I conferred with stated that there is no basis for the lien, that a new document (whatever it is) should not be necessary if First Calif. would simply act on the existing documents given and remove the lien.
I sent First California those opinions given by the Title company.
Unfortunately, after many e-mail exchanges in which I have always been polite, never derogatory or even caustic, in my attempts to reason with pertinent documentation, the senior loan servicing person (Ms. ****) and her counter part in the legal department (Ms. *********) decided they no longer wanted to deal with this issue, and put a block on my emails and as yet have not responded to my attempts to contact them by phone.
That is pretty much where we are at this point.
I have done some preliminary checking into seeking legal help, but have not enlisted any as yet due to the high cost. I am retired and trying to make it on a fixed income. Not a lot of discretionary income to work with.
Thank you for the venue of expressing my complaint. I don't believe there is any excuse for this type of behavior from a professional institution.
I simply request First California take responsibility for the invalid lien against my property so that I may have a clear credit report and be able to use the assets of my property for investment potentials.
Their lien in not only invalid, but illegal and could result in a law suit if not addressed.
At this point I seek no legal damages. I wish them simply to perform their responsibility.
Received business response via email on 2/13/14:
On December 23, 1993, the ****** County Recorder's Office recorded a Deed of Trust from ****** M. ***** and ***** J. ***** to First California Mortgage Company as Instrument XXXX-XXXXXXXX. The following year, First Cal sold the ***** loan to Capstead Mortgage. On September 6, 1994, the ****** County Recorder's Office recorded a Corporation Assignment of Deed of Trust granting, assigning and transferring all beneficial interest in the ***** Deed of Trust from First California Mortgage Company to Capstead Mortgage Corporation, That Assignment of Deed of Trust incorrectly referenced the Instrument number of the recorded Deed of Trust as XXXX-XXXXXXX instead of XXXX-XXXXXX. It is important to note however, that even with the Instrument number error contained in the document, as of September 6, 1994, First Cal no longer held any legal interest in the ***** property.
Five years later, Capstead sold the ***** loan to GMAC Mortgage. On October 5, 1999, the ****** County Recorder's Office recorded an Assignment of Deed of Trust granting, assigning and transferring all beneficial interest in the ***** Deed of Trust from Capstead to GMAC Mortgage Corporation. That Assignment of Deed of Trust also referenced the Instrument number of the recorded Deed of Trust as XXXX-XXXXXXX instead of XXXX-XXXXXX.
The Crosses paid off the loan in 2002. On June 28, 2002, the ****** County Recorder's Office recorded a Substitution of Trustee and Reconveyance of the *****' Deed of Trust back to ****** M. ***** and ***** J. *****. The Reconveyance referenced the Instrument Number of the original Deed of Trust as XXXX-XXXXXXXX, instead of XXXX-XXXXXXXX. There was no reference to the incorrect Instrument number of XXXX-XXXXXXX contained in the previous Assignments.
Mr. ***** states that because of the error on the Instrument number made on the original Assignment from First Cal to Capstead, the First California loan continues to appear on his credit report even though it has been paid-in-full, and that he continually experiences hardship as a
result. Despite the research conducted by First Cal, it remains unclear whether the lien appears on Mr. *****'s credit report because of the error on the Assignment from First Cal to Capstead,or because of the error made by GMAC on the Reconveyance document back to the Crosses, or
In an effort to resolve the error, First Cal will prepare a corrected Assignment of Deed of Trust
and present it to the ****** County Recorder's Office for recording. It is at the discretion of the ****** County Recorder's Office whether or not to accept the corrected Assignment for
First Cal can do nothing to resolve the mistake on the Reconveyance from GMAC to Mr. and
Mrs. ***** because as of September 6, 1994, it no longer held any legal interest in the property.
Should ****** County agree to record First Cal's corrected Assignment of Deed of Trust and the
lien still appear on Mr. *****' credit report thereafter, Mr. ***** must pursue resolution of that error with GMAC Mortgage Corporation.
On behalf of First Cal, I also want to apologize to Mr. ***** for the issues he experienced with
First Cal's Servicing Department. The Servicing Department's original investigation led them to
believe that it was GMAC's error on the Reconveyance that was causing the credit report
problem for Mr. *****. Ms. **** and Ms.********** had stated to him that First Cal was unable
to help him and directed him to contact GMAC Mortgage. Further subsequent investigation of
this matter revealed the error on the original Assignment from First Cal to Capstead.
First Cal will prepare a corrected Assignment of Deed of Trust and submit it for recording to the
****** County Recorder's Office no later than March 28, 2014. I will personally contact Mr.
***** when the document is submitted for recording to advise him of such.
(The consumer indicated he/she DID NOT accept the response from the business.)
Response from Mr. ***** regarding case #BBB CASE#: XXXXXXXX
First of all, I appreciate the support and assistance BBB of the San Francisco Bay Area in unclogging the communication between myself and First California Mortgage. We are finally getting somewhere. I do also thank and accept **** *****'s apology on behalf of First California Mortgage for the difficulty experienced in seeking to resolve this issue.
1. I do accept and agree with the response from First California to initiate a corrected Assignment of Deed of Trust from First California Mortgage to Capstead Mortgage and the sending of it to the ****** County Recorder, thereby releasing any further obligation for the invalid lien from First California's standpoint.
2. I have an additional **** that I believe will expeditiously resolve the impinging effect this lien has upon the current use of my property resources:
In the process of seeking to find a solution to dispute this lien I contacted the credit agency responsible for its revelation. Their policy in processing a dispute is for the financial institution involved with the disputed lien to furnish documentary evidence nullifying its legitimacy. Apparently my position in the dispute is not official enough to do it on my own. This should be no problem for First California to accomplish due to the findings they have unraveled in their own investigation. I would assume a simple letter to the credit agency explaining the nature of the problem (such as has been sent to me) along with a copy of the Capstead Assignment, corrected or uncorrected, should accomplish the immediate release of the lien from their records. I don't know how other credit agencies which might be also holding the same invalid lien on their records are officially notified, but hopefully the correction filed with the county recorder will address any potential issues in the future.
I will be glad to send a PDF copy of the credit-title search report detailing the lien to First California once they unblock my e-mail access to their corporate office. I would have sent it long ago had the e-mail access not been blocked. I will send it directly to Ms. *****'s Office of Compliance if she will reveal to me her e-mail access. The Title Search Report will give Ms. ***** all the information needed to contact the credit agency and address any further details they may require in removing the lien. If Ms. ***** wishes to contact the credit agency directly and obtain the report, the numbers are:
DataQuick Lending Solutions
Search Report No. XXXXXX-XXXXXA
Document No. XXXX-XXXXXXXX
Parcel No. XXXX-XXX-XXX
I, ***** ***** authorize the forwarding of the above personal information
The credit report that reveals this lien will I believe also reveal that the lien is not based on any subsequent Assignments or Reconveyances post dating the XXXX-XXXXXXXX Deed of Trust held by First California Mortgage. It is possible that the lien doesn't even necessarily stem from the incorrect identification numbers discovered on the First California to Capstead Assignment, but simply from the mistake of the mortgage companies involved to update their own records and notify the credit system of the First California-Capstead transaction. That possibility is supported by the observance I have made while conducting my own title search at the County Recorder, in which no further unresolved liens have resulted from ongoing incorrect numbers found in subsequent Assignments and Re-conveyances. Apparently incorrect numbers do not seem to interfere with title transfers as much as one would suppose.
The lien in question seems to be stuck within the XXXX-XXXXXXXX Deed of Trust credit report only, as though it was still held by First California dating from that time. There is no record of its existence to be found anywhere else.
Thanks you to everyone for the attention given to this problem,
I will await your response to the results of the above no. 2 request and be glad at that time to sign off as..... 'Issue Satisfactorily Resolved'
Final Business Response
First Cal sent a letter with supporting documentation to DataQuick on 3/6/14 asking DataQuick to remove the invalid information. A copy was sent via email to Mr. *****.
Mr. ***** responded via email that he would like the same letter sent to the major credit agencies and inquiring about the status of the corrected Assignment. First Cal will respond to Mr. ***** by 3/10/14.
First California Mortgage Company
Final Consumer Response
(The consumer indicated he/she DID NOT accept the response from the business.)
Ms. ***** of First California Mortgage has been very helpful in taking steps to have the lien removed from the Title Search Co.(DataQuick), which is holding the lien. We are simply awaiting for a response from the DataQuick as to their disposition in the matter.
Ms. ***** has stated she will by 3/21 also send a corrected Capstead document to the ****** County Recorder to guard against the surfacing of any further invalid liens.
If there are any records of this invalid lien resident with any of the major credit companies, she has also offered to assist me in disputing them as well. I must first contact them to see if any such liens exist on my report.
As soon as we receive notification that these efforts have been satisfactorily responded to, I will be delighted to consider the issue resolved.