Washington Federal Mortgage Complaint

Washington Federal Mortgage department,

Conventional fixed mortgage Loan servicing, payments, escrow account Texas

I entered into a one time close construction loan with Washington Federal Savings Bank ( WAFD ) on - -, - which converted into a mortgage when I got Certificate of Occupancy in - -. In - and - - mechanics liens were filed on my home because the home builder did n't pay the subcontractors for services that was paid to the home builder via bank funds. Subsequently the bank and their attorney demanded that I satisfy the liens claiming I was in default. At no time have I ever been in default of the loan and have made payments on time. They were claiming default under section - of the deed of trust which are liens attributable to the Property which can attain priority over this Security Instrument.


Now the bank is forcing the payment of attorney fees related to this demand letter. I did not authorize or agree to their attorney 's services and I did not do anything to create the liens. They are passing a cost along to me, that was incurred while they were servicing the loan. I then consulted with my attorney and he confirmed liens do not take priority over the deed of trust. The deed of trust would take priority over the mechanic 's lien as long as it was - recorded. Now a junior lien holder can file for foreclosure but the property would be sold subject to the - lien ( in this case the deed of trust ). The only way the mechanic 's lien would take first position over the deed of trust would be if all parties sign a document granting the mechanic 's lien - priority over the deed of trust ( the deed of trust lender would have to sign off on this as well ). The mechanics lien holders would only be able to foreclose based upon the deed of trust and as long as I was current in my loan obligations this would never happen. This is exactly the conversation I had with - -. - said you do n't have to worry about those liens as long as you 're current on your mortgage and I could later get those liens removed. For residential projects, the deadline to enforce a lien is 1 year from the last available day to file the lien or 1 year from the completion of the work ( whichever is later ). In - - all the liens would be unenforceable and I would be able to get them removed.