Making Mortgage Payments

[woody6]

NEW JERSEY......

I'm not sure where to post this question.....

I started making weekly payments to my mortgage company thru the bill pay system at my bank....It is done by an electronic transfer. My payments are due on the first of the month so I started making the weekly payments the month "BEFORE" the payment was due so that the last weekly payment would fall on or about the 1st of the month it was due....WELL - the mortgage company refuses to post it to my payment and only posts it to the principle then sends me late notices on my bill. They currently have seven weekly payments of mine and are claiming I still owe for January 1st. I have attempted (twice) to have them switch the money to the January payment and they denied the first request and the second request went in today...

What recourse do I have? They claim they can get away with doing that because I don't allow them access to my checking account on a weekly basis to take the weekly payment themselves that would allow them to charge a fee. Can they legally do this or is this the same as them refusing to accept my money towards the monthly payments even though they don't send the money back to me? They are recording me as late and assessing fees and penalties when I am not late.

Please advise.

[JETX]

Originally Posted by woody6

What recourse do I have?

Simply, you don't. Your mortgage note specifies the payments to be made.... on a monthly basis. If you want to amend the payment agreement, you will need to get their permission.

They claim they can get away with doing that because I don't allow them access to my checking account on a weekly basis to take the weekly payment themselves that would allow them to charge a fee.

HUH??? If you make the payments to THEM, why would they need to access your account???

Can they legally do this or is this the same as them refusing to accept my money towards the monthly payments even though they don't send the money back to me? They are recording me as late and assessing fees and penalties when I am not late.

Yes, they can do this since your payments are NOT being done in accordance with your agreement.

Please advise.[/quote]

[woody6]

QUOTE - HUH??? If you make the payments to THEM, why would they need to access your account???


They ALLOW weekly payments - but they claim "only" IF they have access to my account directly AND get to charge me a fee for accessing my account...In other words - I'm allowed to pay them weekly if I give them access to my account AND pay a fee every week to the mortgage company.

I don't think that is fair nor do I think it should be legal but hey what do I know. I'm just an average consumer trying to survive in a meger economy and pay my debts that I owe....without having to pay undo additional fees in the process.

They treat me like I'm scum!

QUOTE: Yes, they can do this since your payments are NOT being done in accordance with your agreement.

How am I not in accordance to the agreement? They want the money by the first of the month....I pay "ahead" weekly so that when the 1st of the month comes they have the entire amount due.

Also - how can it not be in accordance to the agreement when they allow weekly payments? They are just mad that they cannot charge me a fee. It is an electronic transfer - they get cash every week....

Honestly - I bet if enough people complained there can be a huge class action suit against companies that do this to their consumers that are paying their bills in good faith and in a timely manner. The only reason they are doing this is because they are not making the "fee" they want to collect for the weekly payment even though they are already making a lot of money off the interest they earn on the cash they receive in the account they have with the bank....It has nothing to do with "accordance to the agreement" it has everything to do with the fee they cannot charge me.

I'm sorry if I sound harsh - I don't like money grubbers giving honest working people who are making honest efforts to pay their debts in a timely fashion a hard time and I don't like the same money grubbers trying to rob these same people for more money they shouldn't be charging. They are getting their money and they are getting it before it is due. They should be elated!

[JETX]

Originally Posted by woody6

I don't think that is fair nor do I think it should be legal but hey what do I know.

Fair or not, there is nothing illegal about them imposing 'special' requirements for your account. As for the fees, it does cost more for them to process payments.... times four.

I'm just an average consumer trying to survive in a meger economy and pay my debts that I owe....without having to pay undo additional fees in the process.

If that were truly the case, you would simply make your mortgage payment on a monthly basis as you agreed (when you signed the agreement). Instead, you are trying to 'short pay' your note by making additional payments faster. There is nothing wrong with that.... if your mortgage company agrees. If they don't, then you have no legal 'right' or basis to modify your agreed payment schedule.

[quote]How am I not in accordance to the agreement?[quote]
Read your agreement. It says that you agree to make 360 monthly payments of $X.XX amount, on YY date each month.

Also - how can it not be in accordance to the agreement when they allow weekly payments?

This is really simple... and you are either blind to it, or just being difficult. As your own post says... they allow weekly payments IF you compensate them for the additional costs that they incur. It is your choice to agree and pay the fees, or not (and continue to pay monthly).

They are just mad that they cannot charge me a fee. It is an electronic transfer - they get cash every week....

And they could just as easily (and correctly) say that YOU are being obstinate in not realizing that they are legally right in insisting on complying with the agreement YOU signed.

I bet if enough people complained there can be a huge class action suit against companies that do this to their consumers that are paying their bills in good faith and in a timely manner.

Simple response.... you are NOT paying in a timely manner (as agreed), you are trying to amend the agreed payment schedule.

[woody6]

Thank you for your thoughts. I disagree and think consumers should fight back but I understand your point.

It doesn't cost them anything to receive the money weekly. I am an accountant myself and I reconcile systems to accounts all the time. No more work is involved if I'm reconciling monthly payments or weekly payments. They are just being greedy and until a group of consumers get together and fight it they will continue to try and get away with it. SAD. And just for the record - I'm paying ahead - not behind...and in essence they will get a lot more towards their loan with weekly payments then by me paying monthly but OH - of course - they don't like that either because then they won't get as much money in the interest payments. It is all about money and all about GREED on the part of the mortgage companies.

[JETX]

Originally Posted by woody6

No more work is involved if I'm reconciling monthly payments or weekly payments.

Of course, that is not correct.
Are you really saying it takes you NO time (cost) to 'reconcile' a monthly payment you receive from someone?? Of course it does, if for nothing other than opening the file (computer or hardcopy), making a record, running the update accounting, etc. Lets assume you are VERY efficient and it only takes you 10 minutes.
And on a monthly pay schedule, you do that 12 times a year, that is 120 minutes (two yours).
Now, you have someone who insists on your accepting 52 payments a year. Do your own math.

Bottom line..... either accept their 'offer' to allow weekly payments, or don't. The choice is yours..... and you have NO legal standing to insist on your way.