I applied for KYHC Mortgage reinstatement March 2015, under the "old" forgiveness rules of 3 years. The award was issued April, after the "new" 5 years forgiveness rules went into effect.
I was unaware of these new rules. I do not have a copy of my note and would not have noticed if it said 5 instead of 3 as I had a previous award for unemployment that was 3 years and has already been reconveyed. I expected my reconveyance to come last month, but it didn't. i am being told its a 5 year commitment.
Is this legal? Can the accept an application under one set of rules and then award on more stringent ones? I have already received an offer on my house and cannot afford to wait another 2 years, but this means I will lose 30,000 in what I thought was going to be profit.
I am pretty pissed.
I need to sell my house, and if I have to pay KYHC back in order to close escrow, do I have any recourse to try to get that $$ back based on having applied under the old rules? HELP
Reason of review: Rule change after mortgage application.
Monetary Loss: $30000.
Preferred solution: Appeal decision back to original rules I applied under.
I didn't like: Changing rules after application.