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Machelle Lorraine Redmond

Machelle Redmond’s Answers

2 total

  • Mortgage Loan Payoff Question

    I have a loan payoff question. I just sold my house and it closed last week. My house was sold to a third party, so I never saw any off the loan documents in the process. The title company that closed the sale received notification from my 2nd mo...

    Machelle’s Answer

    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.

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  • Bank honors future dated check and charges insufficient funds fees

    I submitted my January rent check early to my land lord and post dated it for January 1, 2009. It was submitted on December 9, 2008 and I was subsequently charged insufficient funds fees to the tune of $175.00. When I called the bank, I was told ...

    Machelle’s Answer

    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, and must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it before the bank takes any action with respect to the check described in Section 4-303. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items under Section 4-402.

    Note that the bank my change you for the service of monitoring a post dated check, similar to a stop payment. A bank is not required to check the date of a check before honoring, but may decline processing a check due to a date in the future.

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