As the title states, my grandmother is being taken advantage of by her new mortgage company that bought the note for her home. She's always made her payments on time, and she's lived in her newer home for over fifteen years now. I know a bit about the mortgage note side of investing because it's a side of investing I want to do once I reached a higher level down the road. But now, suddenly, her payments are only going towards the interest and not the principal, and they're stating that she's now in default because of it. Her payments have drastically increased, and now she doesn't know what to do.
I can't remember the term, but when a mortgage is transferred, the new holder can't prove they hold the note. Then the entire mortgage can be dismissed in court, but I don't know if that will work here. She's tried to get a lawyer, but they want $750 an hour, and she said those lawyers were referred to her. Any advice on how to pursue this? It sounds more like an elderly scam than anything else. She's located in Cincinnati.
First it could be a scam. So before you pay them any money, go to your counties records to see who currently is listed as the Notes owner. If it is NOT the people who are calling your grandmother then contact the people who are currently listed to verify if they are the current owners. This can be done relatively quickly.
Until you KNOW for sure who owns the loan do NOT directly pay any of these people. Push everything else out of your mind and just focus on this task.
Either the people are correct owners or it is just a scam. But you need to find out first.
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