Mortgage Company is Refusing all back payments to reinstate loan!

[Shawn M]

What is the name of your state? MS

My husband & I fell behind on our mortgage payments, due to me being out of work. We owe Jan - Apr 2006 a total of $$6306.16 plus late fees of $240.64. Please keep in mind, that we have spoken to our mortgage company (Netbank), in regards to our situation. I called Netbank on the 23rd of April and told them to please check to see how much I owed so that I could become current with them. They told me the total dollar needed would be $6546.80 in the form of a cashiers check. The next day I went to our bank, secured a cashiers check for that amount. As I was getting ready to Fed Ex our payment to them, I happened to call to get their physical address and thats when they told me that my file had been sent to Morris, Schneider, & Prior (Attorney's I am assuming). Either way, I was furious.... I had kept in contact with them all of this time and once I was able to pay in FULL all monies due them they decided to send it to their attorney.

I received advice from a trusty source telling me to go ahead and Fed Ex them the cashiers check. So that is what I did! On April 24th 2006 I sent them a package containing a cashiers check for all past payments plus all late fees to get my mortgage back on schedule. They received it the very next business morning (by 9AM).

Today (5-8-06), I get home to find my cashiers check and letter from them in my mail box. They held my cashiers check for a total of 10 days before deciding to return it to me. The letter states that the funds were not enough to reinstate the loan and that I needed to call Morris, Schneider & Prior for the exact amount needed.

My question is this:

How can they refuse a cashiers payment of $6546.80 (Payment in Full) after I have been in contact with them? Do mortgage companies have to send out a Certified Letter stating that the loan is in foreclosure? If so, I have not received ANYTHING via mail stating this. What rights do I have? Am I going to have to pay for attorney fees?

Please advise.What is the name of your state?

[Zigner]

Originally Posted by Shawn M

My question is this:

How can they refuse a cashiers payment of $6546.80 (Payment in Full) after I have been in contact with them?

Because you were in default. They are under NO obligation to ignore that default just because you called them on the phone.

[pojo2]

(Payment in Full)

I suspect payment in full now includes substantial Atty fees to prevent a foreclosure. Count you self lucky thay have not started this process already.

Aren't most mortgage payments due on the first of a month so would you not have to have included your May payment as well to truly be paid up in full?

Yes you will have to pay the Atty fees at this point or negotiate it away.

[PghREA]

The letter states that the funds were not enough to reinstate the loan and that I needed to call Morris, Schneider & Prior for the exact amount needed.


You answered your own question. Call the company and find out what amount the check needs to be written for.

Keep in mind that interest is being charged on the balance from when you last sent in a mortgage payment (December 31, 2005). You also have to pay the 4 months of interest on the higher balance.