Machelle Lorraine Redmond's Answers

Bank honors future dated check and charges insufficient funds fees

Section 4-401(c) of the Uniform Commercial Code (check your state's version of the UCC) provides the following: (c) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date of the check, unless the customer has given notice to the bank of the postdating describing the check with reasonable certainty. The notice is effective for the period stated in Section 4-403(b) for stop-payment orders,...

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Mortgage Loan Payoff Question

If the bank is correct in the new payoff amount then you owe the money. More than likely you signed an error and ommission type statement that obligates you to correct errors that might have occured at the closing. The mortgage company will not release the property you just sold from their lien until you pay the amount that is owed. Failure to have the lien release could constitute a breach of warranty you gave when you signed the warranty deed to the new purchaser.