Differences from Closing to first payment

Thames105 · #1 01-22-2008, 04:48 PM

What is the name of your state? Georgia
When my husband and I first purchased our home, at closing the monthly payments were $1127.44. Less than a month before our first payment was due our account was sold to a different servicer...Countrywide Home Loans. Our new statements stated our payments were $150.00 more than what was agreed upon at closing with the difference being in the PMI insurance. They were stating it was different that what was agreed up and on all paperwork at the time of closing. It went from $68.83 to $257.58. I have spoken to numerous people at their company, faxed over all my paperwork but all they can do is deny that I am correct and send me papers that were simply quotes before closing and nothing with the amount and signatures of the closing date.
I have contemplated contacting an attorney to deal with this but finding one I can afford is another story. Any suggestions?

Thames105 · #2 01-27-2008, 09:25 PM

Does anyone know? Can anyone help me out here?

Grandma's house · #3 01-27-2008, 10:10 PM

At the closing table...NOT at/DURING application or the process of the loan...what were the figures for the PMI? When you closed the loan with the title co. sitting with you what were the figures AT closing? The hud (Housing & Urband Development form/final settlement statement" the one with all the numbers on it reflected the PMI paymt. and the total payment, this should not have changed.

You had 3 legal days to review these documents and after that it's done. If you have an issue STILL you need to contact the atty. of the title company. That their title insurance should have covered this. If still no answer then contact the legal dept. of the lender and fax them the hud settlement statement and PMI disclosure AT FINAL settlement.

Thames105 · #4 01-28-2008, 12:47 AM

At the closing table it was $68.83 and I have contacted the attorney that did the closing and they said there was nothing they could do. I have also faxed to the servicer the papers but they refuse to accept that they are wrong.
So I should contact the lender's legal department? During application is was the $257.00 or so but new papers were drawn up the same day as closing and it was lowered to $68.83. The servicer (Countrywide) changed it almost 2 months after closing just before our first payment was due. We closed on April 11; our first payment was due June 1st and we received the sell off letter just two weeks prior and then just a week prior we got notice of the payments going up.
So you think we should contact the legal department from the lender? not the servicer?

tuffbrk · #5 01-28-2008, 02:29 PM

Clearly there was an error with the PMI if it originally was $258, then was adjusted down to $68 and now is being adjusted back to $258 again. I'd recommend you contact the party that originated your loan (Loan Officer) or the party that funded your loan (closer). Those parties will be able to advise you best as most likely the error occurred with them.

Also - is this a one time increase to cover the PMI shortage or has your monthly payment gone up?

Thames105 · #6 01-28-2008, 04:28 PM

It made my monthly payments go up by over $150 and then they increased it again on Jan 1st. The thing is, if its an error on their part from quote to closing, then its their fault and they have no right to change it after the HUD has been issued and signed

musze007 · #7 01-30-2008, 05:29 AM

give an update please. i'd love to see how this one ends

Thames105 · #8 01-30-2008, 11:22 AM

I just recently found out that the whole account must have been sold cause both American Broker Conduit (the original lender) and American Home Morgage (the original servicer) went out business in August 2007. We purchased our home in April 2007. So I am contacting the legal department at Countrywide and faxing them the HUD and going from there.

tuffbrk · #9 01-30-2008, 11:39 AM

The Legal department won't be able to help you. They don't have access to Servicing records. You can request if there is a customer complaint department or check out their website to see if you can post your complaint to an executive.

Here's the thing though - Servicers have every right to make corrections to your escrow account and, in turn, your payment. Otherwise, you won't be contributing enough funds monthly to cover your taxes and insurance bills. Many servicers demand a lump sum payment and will only stretch it out over time if you call and complain.

Basically what I'm saying is that your Servicer corrected the error in the most customer-friendly, least invasive manner possible. Keep in mind, they did not create the error, they merely "inherited" the error. That does not negate their responsibility, however, to ensure that you understand the correction. Frankly, you should just check the amount of the annual premium to see what the monthly portion should be. Some states allow servicers a 2 month cushion - so other than that, you should be able to easily calculate the correct monthly amount to be included in your payment.

Please do let us know how you make out. I have a friend who works at Countrywide...if you don't obtain a response, I could ask them where your inquiry should be directed.

Thames105 · #10 01-30-2008, 04:39 PM

Our payments went up twice though. Once prior to the first payment being due for the mistake in the PMI and second for Jan 1st. Our monthly payments at closing was set for $1127.52. with the change of hands, it went to 1277.78 at first payment then again to $1357.58 for the increase in taxes. I understand the last one and agree BUT, the first one was the change in the PMI. Had we have known that this would happen, we would NOT have closed.
We were ecstatic when we saw the monthly payments because we knew we could survive with them. Otherwise, now one payment is more than one of my husband's paychecks...which he only gets twice a month.