In contract and everything going well until HMF tries to screw everything up

Question

Might be a long story, but I appreciate any advice. We are in contract (my gf and myself) to close on a nice house in Cumberland, RI on 8/21. We were pre-approved and signed all the mortgage documents last week. My credit score was around 710 when they pulled it, and her's 770. Mortgage details.Conventional5% downSeller $4K closing cost credit.Rate 4.125% locked for 60 daysClosing 8/21 We had the home inspection last week and everything checked out better than expected. It was our last big hurdle (so we thought). Last Thursday 7/23. I received a letter from HMF (Hyundai Motor Finance: NEVER, I really mean never do business with this company it has been horrible.) dated 7/14/15 that they paid my 2015 property tax bill of $78.05 and to send payment as soon as possible. I called to pay the bill and that's when things started to crumble. They said the debt was charged off. HMF Background:Leased a 2013 Hyundai Elantra on 4/2013Paid lease of and bought Elantra out on 4/2014.Sold Elantra 12/2014Tax bill paid by HMF unknown - they will not send me a copy of the tax bill because it is technically in their name."Tax Assessment Letter" dated 7/14/15Paid in Full 7/27/15 The collections rep I spoke to today said that Hyundai does not report property tax charge offs to the bureaus, but he could not send me any documentation confirming this. My fear is that this is incorrect and that the 'charge-off' will appear on my credit report in August.If this hits my credit report, my score is going to plummet. What should I do? I've contacted my LO already to make him aware. He seems to be optimistic. He says he can't say anything for certain until he sees if it appears on credit report, and that a huge score drop would result in the mortgage being pulled. Should I contact an attorney immediately? I'll provide a picture off the "Tax Assessment Letter" when I am home from work. Any information I forgot that would be helpful, let me know. Thanks.

Answer 1

mmartini007 wrote:
Might be a long story, but I appreciate any advice. We are in contract (my gf and myself) to close on a nice house in Cumberland, RI on 8/21. We were pre-approved and signed all the mortgage documents last week. My credit score was around 710 when they pulled it, and her's 770. Mortgage details.Conventional5% downSeller $4K closing cost credit.Rate 4.125% locked for 60 daysClosing 8/21 We had the home inspection last week and everything checked out better than expected. It was our last big hurdle (so we thought). Last Thursday 7/23. I received a letter from HMF (Hyundai Motor Finance: NEVER, I really mean never do business with this company it has been horrible.) dated 7/14/15 that they paid my 2015 property tax bill of $78.05 and to send payment as soon as possible. I called to pay the bill and that's when things started to crumble. They said the debt was charged off. HMF Background:Leased a 2013 Hyundai Elantra on 4/2013Paid lease of and bought Elantra out on 4/2014.Sold Elantra 12/2014Tax bill paid by HMF unknown - they will not send me a copy of the tax bill because it is technically in their name."Tax Assessment Letter" dated 7/14/15Paid in Full 7/27/15 The collections rep I spoke to today said that Hyundai does not report property tax charge offs to the bureaus, but he could not send me any documentation confirming this. My fear is that this is incorrect and that the 'charge-off' will appear on my credit report in August.If this hits my credit report, my score is going to plummet. What should I do? I've contacted my LO already to make him aware. He seems to be optimistic. He says he can't say anything for certain until he sees if it appears on credit report, and that a huge score drop would result in the mortgage being pulled. Should I contact an attorney immediately? I'll provide a picture off the "Tax Assessment Letter" when I am home from work. Any information I forgot that would be helpful, let me know. Thanks.I am confused as to why they would have paid it - I am assuming it was tax because you were leasing a car from them and the taxes are spread out during the months of the lease - but if you bought it from them in 4/2014, they no longer had an interest in it.  And when you sold it in Dec 2104, you no longer had an interest in it. So when did the tax occur?  Does it sound like two months of taxes maybe? I just re-read your post and it says the 2015 tax bill.  How do you owe taxes on a car you dont own anymore, if you sold it in Dec of last year? Its very confusing to me.