How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Barrister Your Own Question
Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34295
Experience:  16 years real estate, Realtor. Landlord 26 years
19958803
Type Your Real Estate Law Question Here...
Barrister is online now
A new question is answered every 9 seconds

We have not paid our mortgage for the last two months. We are

This answer was rated:

We have not paid our mortgage for the last two months. We are approved on a short sale and go to closing in a few days. Our credit union services our mortgage but sold it to Fanny Mae years ago. We have our savings and checking account this same credit union. Our children's savings accounts are at this credit union. With in the last two weeks our credit union has blocked us from accessing our accounts (and children's accounts). 1. Is this legal? 2. Can they draw the funds out of those accounts to help recover the missed payments over the last two months?
Hello and thank you for using JA! My goal is to provide you with excellent service and help with your legal problem.
.
1. Is this legal? 2. Can they draw the funds out of those accounts to help recover the missed payments over the last two months?
.
Unfortunately yes, it is completely legal for them to access any accounts you have with the bank to make up any missed payments. This is what is known in the banking industry as "cross collateralization". What that means is that when you opened your accounts originally, somewhere buried deep in the fine print is a little paragraph that states that you agree to allow the lender to cross collateralize your accounts.
.
So if you have a debt on one account that you don't pay, but have assets in another account, if you don't pay the debt after notice of the delinquency, they can take assets from the other accounts in your name to pay the debt.
.

I am sorry that I don’t have better news, but please understand that I do have an ethical and professional obligation to provide customers with legally correct answers, even when an answer is not favorable to the customer.

.

.

.

Thanks.

Barrister

.

If you need further help, just reply to me via the “REPLY” button and I will be happy to continue.

.

I cannot enter into an attorney client relationship, this is a public forum, and all posts are available for public viewing. There is no duty of confidentiality that attaches to any posts. The information provided is not a substitute for a local attorney’s legal advice.

Barrister and 6 other Real Estate Law Specialists are ready to help you

Related Real Estate Law Questions