Refinance Help

Question We are trying to refinance our house. The attorney from the re-financing bank contacted us and stated?
the original deed was invalid. When we originally purchased this house, the house was in foreclosure, owned by the bank. The house had a POA attached to it and the POA signature was not on the original deed at foreclosure, just the bank's signature, The original attorney is deceased from the original closing. The re-financing attorney is asking us to resign our paperwork from the original closing....and will not explain to us what all of this means, please help. Do we "technically" have rights to our house? What does an invalid deed mean?

Best Answer Get your OWN attorney to explain it.

Question Bank says I HAVE to refinance my mortgage so they can sell it off.?
Am I legally obligated to refinance my mortgage? The bank that owns my mortgage says that I MUST agree to refinance or they will be unable to sell my mortgage off. This seems a little shady to me and I shouldn't have to do this nor pay for all the closing costs they want ($4500.00). Please help! Wow, you guys are quick! Thanks so much for your help. I've had the mortgage for 2 years this month. Never applied for a new loan/refinancing etc. I received in the mail (directly from the bank holding my mortgage) that included my credit report/score and said that I was a "loan applicant." I called them and they said that this was "standard" and automatic since they are in the process of trying to sell it. It is an FHA loan if that matters. Never late, never missed a payment and the bank trying to sell it is the original holder of my mortgage. My current rate is 5.375% and they said it will drop to 4.25% and is "no cost." Also on the paperwork they want me to sign shows my house being worth 50K more than it actually is. It says I have equity that I really don't. This whole thing is weird and I can't seem to find any information online about banks doing this before. : /

Best Answer No you absolutely do not have any legal obligation to refinance your mortgage once you got your money and they recorded the mortgage or deed of trust. If they cannot sell the mortgage because they made a mistake, they must pay for any and all costs of such refinance, so there is absolutely NO COST to you. Also make darn sure that they do not slip in any contract provisions which are less favorable to you, or you should not agree to them. If anything looks shady to you or you have questions, then ask them to pay (get it in writing) for an attorney of your choice to review the documents. Based on your additional details that does sound shady. No bank would voluntarily offer to refinance a mortgage at an interest rate of 1% lower, because they can sell the 5.375% mortgage at a higher price in the open market.