Consumer complaint received 2021-07-19 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: American Mortgage Investment Partners Fund I Trust
State: MD

Complaint narrative:
Good evening. 



I am requesting your assistance or guidance. This is my situation : There were two mortgages on my home in XXXX, MD. : XXXX XXXX XXXX , XXXX and XXXX  XXXX XXXX. The funds from the foreclosure sale ( which took place in the fall of XXXX ) were not disbursed appropriately, everything went to the first mortgage lienholder in XXXX of XXXX. Prior to foreclosure, the appropriate paperwork was completed by myself and provided to XXXX ( who forwarded it to American Mortgage ) once I had advised them that I could no longer afford to pay the monthly mortgage. I was requested on numerous occasions by XXXX and XXXX XXXX  to complete Deed-In-Lieu-Of paperwork for both mortgages, and also provide proof of my loan and the balance due to XXXX  XXXX XXXX, which I did. 

My employer periodically pulls my credit report due to the fact that I have a government security clearance. I was advised by my employer that XXXX  XXXX XXXX is on my credit report as a charge-off in the amount of {$83000.00}. We can not have negative items on our credit report. I reached out to XXXX XXXX XXXX explaining to them my home was sold, and requesting clarification on the negative item on my credit report. They advised me that they in fact did not receive any money from the sale of the home. They advised me that the sale of the home should have not taken place without addressing the XXXX  XXXX XXXX lien, that this is a title issue and the short sale should have not closed without providing XXXX XXXX XXXX with funds to release the debt and lien, and the title company that handled the transaction would have insured the property is free of liens upon a successful closing. 

The first mortgage was sold to XXXX XXXX XXXX on XX/XX/XXXX. This week I reached out to American Mortgage Investment Partners XXXX XXXX. in reference to the sale of the home and why none of the monies were paid to XXXX  XXXX XXXX. In XXXX, American Mortgage told me that they were the note/mortgage holders and that XXXX XXXX XXXX was the servicer on my loan, and that XXXX had always serviced my loan since American Mortgage took ownership. During the week of XX/XX/XXXX, I sent an e-mail to American Mortgage, and I was advised the following by Mr. XXXX : " The property was sold third party via foreclosure sale, which the junior lien is not satisfied, the foreclosure simply wipes all liens off title. If the property went through a traditional closing, and the junior lien was paid off, then a satisfaction would have been issued. '' Is the statement about disbursing funds in fact true, and that XXXX XXXX XXXX shouldn't have been paid anything? Is it true that a house can be sold in a foreclosure proceeding without a clear title, without in fact releasing the lien and debt. Does this actually mean that I am stuck with a debt of {$83000.00}? 

Thanks in advance for your assistance and any guidance you can provide to me with this situation.

Company response to consumer: Closed with explanation