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Richard, Lawyer
Category: Real Estate Law
Satisfied Customers: 53685
Experience:  32 years of experience as lawyer in Texas. I'm also a Real Estate developer.
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I recently signed the closing documents to refinance the mortgage

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I recently signed the closing documents to refinance the mortgage on my home. The refinance was with the same company that previously held the mortgage. The notary, witnessing the signing, explained to me that the first two pages I signed were for the company to send me $360,000. The company (I'll just call them the refund company) named on the document was different than the mortgage company name. The name of the mortgage was also on the document but was not the main author of the papers.
The notary assumed this amount was what I was taking out of equity in the house, but this was not so, it was to be a simple refinancing transaction. I told her this and she had me sign the papers anyway (I have copies). I signed these papers along with the stack I expected for closing the loan.
Yesterday I received a letter, from the refund company, thanking me for paying off my mortgage and stating that a request would be sent to my county of residence to release the lien/deed on my home.
My question is do I have the legal obligation to inform the mortgage company or the company named on the refund documents of their mistake? I am in a ethical/moral dilemma on the subject but what is my legal obligation? Should I wait and see if this is just a case of one company paying off the mortgage and the other processing the new mortgage?
Welcome! My goal is to do my very best to understand your situation and to provide a full and complete answer for you.

Good afternoon. This is likely to be the case of one company paying off the mortgage and the other recording a new mortgage. Even though the companies may seem the same, it is likely they are affiliated under the umbrella of one entity. But, you have no affirmative obligation to do anything. If they have in fact made a mistake, it's their duty to resolve it; but you have no legal obligation to reach out to do their job for them.

Thank you so much for allowing me to help you with your questions. I have done my best to provide information which will be helpful to you. If I have not fully addressed your questions or if you have any follow up questions, or if I have misinterpreted your questions in any way, please do not rate me yet, but simply ask a follow up question without rating so I can provide you with a fully satisfactory answer. If I have fully answered your question(s) to your satisfaction, I would appreciate you rating my service with 3, 4, or 5 faces/stars so I can receive credit for helping you today. I thank you in advance for taking the time to provide me a positive rating!
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Thank you so much for the positive rating! I appreciate having had the opportunity to serve you! If I can be of assistance to you in the future, just look me up and I will be happy to help!

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