Foreclosure paperwork miscues piling up – The Denver Post

And the stories just continue.

Brent and Wendy Diers of Fruita thought their foreclosure nightmare would end in April when they sent a check to pay off their mortgage.

But more than six months later, CitiMortgage hasn’t followed through on repeated assurances it would release the lien and give them title.

And despite a judge’s ruling that they are not in default, the lender’s law firm, Castle Meinhold & Stawiarski, continues to pursue a foreclosure sale.

“We are not in default and they do not have authorization to sell our house,” a frustrated Wendy Diers said. …

In a phone conversation, the Dierses recorded a CitiMortgage employee in May telling them “rest assured, we do have the check. Everything is fine.”

In July, the couple were told the title was being contested. Another CitiMortgage representative, named Jennifer, in late July tells them, “We have the title clear. The mortgage has been paid.” …

On a smaller scale, the Compo family of Colorado Springs also found out how difficult it can be to escape foreclosure.

The family wanted to modify their mortgage payments after their business income dropped. A worker with GMAC Mortgage told them they couldn’t do so unless they had missed two payments, Susan Compo said.

The Compos started missing payments, but set aside the mortgage money into savings. After three different rejections for a modification, the family, whose financial situation eventually improved, requested a reinstatement statement.

That statement tells borrowers what they owe to get caught up and escape foreclosure. Compo said she sent a check for the amount law firm Castle Meinhold requested, about $17,200, due Sept. 30.

But after the check was sent off, the law firm added about another $1,000 in charges. The payment didn’t arrive at GMAC Mortgage until Oct. 12.

The Compo family didn’t find out about the added fees until GMAC rejected the check as insufficient.

“We don’t have the money for the fees,” Compo said.

Castle Meinhold didn’t return a phone call from The Denver Post. But the firm did call the Compos offering to waive the additional fees, she said.

“I am giving them an opportunity to make this right,” Compo said. “Let’s see what they do.”