For the first time in the history of the housing market in the US, the government is asking banks to return the most recent mortgage payments from people displaced by Hurricane Katrina. Freddie Mac, the government’s housing agency, has asked mortgage lenders to return September mortgage payments made by anyone in the affected areas. Mortgage industry experts say this is unprecedented. It is one more option for those displaced by the Hurricane with fewer and fewer options.
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I notified my mortgage lender Oct. of 07 that I wanted to do a reverse mtg. they refused to give me a pay off amt. I was ready to close Nov.1, 07 My Lender of reverse Mtg. even called them, Option One and they refused to talk to them even though I sent them a letter authorizing them to give them the pay off. Feb. 08 they sent me Foreclosure papers. Since that time, I have answered court papers and they have been denied foreclosure, they lost the original Note. They have tried again using another name, but again I answered the court and they were denied. In going through the closing papers, I found that they did not offer the "3 day right of Rescission: the penalty for that, is cancellation of their mortgage according to what I read, is that true? Do they have to give me back all payments and it reverts back to the other mortgage? I hope that is true, as they are a rip off and a preditory lender. They added over $20,000 to my loan plus. How do you suggest I handle them at this point? I still want to do a Reverse mortgage, but until this high mortgage is resolved I can't afford to do a reverse mtg. I am now a widow living alone, I am 68. Please help.