Refi’d Mortgage for debt consolidation – No one paid off creditors ?

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When I refinanced my mortgage in May 07 the mortgage broker included 5405.01 in payments allocated to credit collections on my HUD statement.
His broker fees were around 6900.
I explained that the bulk of the CC collections was for a deceased relative’s account of whom I was only the authorized user.
My broker said it would tak eso long to dispute it that i was better of refing and paying it off and that my credit score would go up a lot.
Well 7 months later in late November I needed a small home equity loan. I have 165k in equity in my house still and World Savings/Wachovia assured me I should easily get the loan.
Instead they turne dme down due to credit rating.
I pulled all credit reports.
3 of the 4 owed creditors still show up. So my credit was not improved!
Who was responsible for the payoffs ? My mortgage broker or the title company ?
i should add that ive just gone thru junk mail and found a collection agency dated 11/07 still demanding payment on the largest collection. (4600- HSBC wasonly authorized user though) ironically theyre only asking for 50% of total.
if they were payed why are they stll asking?
what a headache. 🙁
To last answerer, Im in PA.
HSBC switched the debt to my name after my late grandfather died.
this was several years ago and at the time i was flush with cash and working a 60 hr a week job in nyc. So the only thing i did was call hsbc and write them a letter telling them since i never opened it, to remove me.
i also wrote the credit reporting agencies.
I shouldve followed up. But HSBC are total @##$ %^ to have transferred it to me.
Now I will follow up on it one way or another.

I currently have two auto loans, some credit card debt, and will be purchasing a house very soon. I know they have debt consolidation loans, but all ive seen are fixed rates for them. Do they offer Arm rates for debt consolidation for auto, credit, and mortgage loans? Any info is greatly appreciated. Also ive noticed that quicken loans has the cheapest rates, and best quotes do you know of others that have better?

  1. Reply
    Spock (rhp)
    January 22, 2011 at 1:46 am

    the firm or person who handled the settlement of the refi funds.

    if this was the title company, them. if it was an attorney, him, etc.

    you need that firm or person to prove by receipts that they disbursed the funds as per the list they were given. maybe they did so and the creditors simply did not update the agencies. maybe someone absconded with the funds, too.


  2. Reply
    January 22, 2011 at 2:43 am

    The title company should have paid from the loan proceeds all of the pay-outs shown on your closing statement. Check each line item on that closing statement and determine if the credit accounts are listed. If they are, contact the title company and ask the manager why the debts were not paid, and if they were to send you written documentation of the payments.

  3. Reply
    January 22, 2011 at 3:01 am

    Your broker is a liar. You couldve disputed and been done with it inside 90 days. You write 1 seperate letter for each debt to the credit agency. They respond in 30 days and either take it off or leave it on. If they leave it on, you write another letter telling them to give you physical evidence of the debt. Then within 60 days they usually either do that, or get rid of it. You’d of been better off paying 20 or 30 dollars for a credit repair book and 5 dollars in stamps and envelopes than paying 6900 to your broker. You would also have been better off paying a lawyer 2k to 3k to have them clean your record also. I dont know why when you refi’d you just didnt get a check though and send the money yourself. But i suggest maybe you try the escrow company and ask them what they did with the money that was supposed to be sent.

    Edit* Poster just sent me a nasty email, but since she is blocked im just going to have to post here. You spent 6900 for a broker! HAHAHAHA I bet he is laughing his ass off at you. You have no idea how to manage money thats why you are so in debt and have to refi and keep getting loans. Im sure with how bad you are at money you will be one of the many people that get forclosed on this year. All you had to do was buy one 20 dollar book( maybe even get it for 10 dollars used on amazon) but you let some guy talk you into giving him 6900! HAHAAHAHAHAHA

  4. Reply
    January 22, 2011 at 3:57 am

    Since the collections were not a lien on the house the title company is not responsible for the payoffs, they may be able to help you track them. They most likely cut the checks but they won’t be responsible for them getting there. If they did cut the checks they should be able to see if the checks were ever cashed.

    I am pretty sure the title company would have cut the checks and not the mortgage company. Call your broker and see if they can help.

  5. Reply
    January 22, 2011 at 4:02 am

    Not sure where you are or what the real story is but here’s the scoop.

    There is nowhere on God’s green earth that you are responsible for debt as an authorized user. Negative credit as an authorized user will not affect your credit (even before they changed the system) and as of recently, positive credit will not affect it either.

    What broker would attempt to consolidate debt that is not yours, what lender would finance it, and what escrow company would cut a check for it? NONE!

    If you are just an authorized user, dispute it and be on with your life; It’s not yours and impossible for you to have consolidated it anyway!

  6. Reply
    January 22, 2011 at 4:38 am

    There are ARM mortgages and ARM lines of credit. But, why would you want adjustable and risk the payment rising significantly? Also check out

  7. Reply
    Richard N
    January 22, 2011 at 5:20 am


  8. Reply
    Chris B
    January 22, 2011 at 6:19 am

    Thats what a HELOC is……home equity line of credit…….the rates constantly change……..but its risky……I prefer fixed rate loans

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