Payments to Mortgage Company Question???

LeGaSu · #1 10-20-2005, 09:24 AM

What is the name of your state? Ohio

Mortgage company is out of Dallas, TX. We were just told by a representative of our mortgage company that they "will not accept partial payments on our mortgage" (Example: pay 1/2 on the 1st, then the other 1/2 on next payday).

Is it legal for them to refuse a payment of any type?? This just doesn't seem right to me. Thanks.

Samm1970 · #2 10-20-2005, 10:43 AM

Quote:

Is it legal for them to refuse a payment of any type?? This just doesn't seem right to me. Thanks.

Yes it is legal since you signed a note that says you'll make full payment by the first. No mortgage company would allow you to do this unless you have signed up for a bi-monthly mortgage program.

So, you might want to inquire whether or not they offer a bi-monthly mortgage program. By bi-monthly involves you making a 1/2 payment every two weeks. The mortgage company usually contracts out the administrative part of a bi-monthly mortgage program so it requires a fee. Then what happens is that you end up making 26 1/2 payments or 13 full payments throughout the year, thus paying off your loan roughly 6-7 years early.

HomeGuru · #3 10-20-2005, 11:29 AM

I agree**************

LeGaSu · #4 10-20-2005, 11:31 AM

Doesn't changing to a bi-monthly payment increase the monthly payment total?? I believe we were offered that option at one time and the total per month was even more than monthly. We're barely scraping by now and cannot pay out even more.

HomeGuru · #5 10-20-2005, 12:09 PM

Quote:

Originally Posted by LeGaSu

Doesn't changing to a bi-monthly payment increase the monthly payment total?? I believe we were offered that option at one time and the total per month was even more than monthly. We're barely scraping by now and cannot pay out even more.

**A: no, you are getting confused with a different program.

Samm1970 · #6 10-20-2005, 04:22 PM

It shouldn't have a higher payment unless maybe they are financing in the fee associated with the program. They might spread the fee out over 12 months if you can't afford to pay the fee up front. Otherwise, you do end up paying more during the year because as I said you do end up making 13 payments throught the year rather than 12.

pojo2 · #7 10-20-2005, 06:26 PM

Quote:

Originally Posted by LeGaSu

(Example: pay 1/2 on the 1st, then the other 1/2 on next payday).

Is it legal for them to refuse a payment of any type?? This just doesn't seem right to me. Thanks.

What is your cut off date for a penalty for late payment? You do yourself no good if you incur such an expense every month.

Perhaps it is time for you to consider another alternative. Sell the house you can not afford before losing it and buy one that you can afford.

LeGaSu · #8 10-21-2005, 12:06 PM

We just bought our home in Dec. 2004. We are 1st time home buyers and the mortgage broker was an ex-boss of my husband's and he continuously pretended "he would give us a great deal", "would cut his fees enormously", and "take care of us".

He took care of us alright, all the way to HIS bank with an exorbitant fee for his services that was so high both realtors and the title agent at closing were all telling us they've never seen fees that high for house double the cost of our home. We were all suckered in to a fast closing date by him (severe snow storms and him claiming to be going out of town and all right before Christmas...I put my foot down and demanded he stop pushing everyone and wait until AFTER Christmas). Then he pushed everyone again(literally calling the seller's realtor, my realtor and the title ofc himself) to get it done before New Year's claiming he "HAD" to close it before then for "end of year reporting". I told him bluntly that I know for a fact that end-of-year close doesn't happen BEFORE the end of the year is even done and he needed to stop calling the seller's realtor.

What I didn't know is that we had the legal right to actually SEE the closing documents (can't remember the name right now) before we were actually sitting the closing meeting! He ended up giving us a split loan (90/10) and screwing us out of more out-of-pocket money at closing b/c he wouldn't lower the fee he was charging. We were already in to it so far and the payment was only about $103 more per month than we were paying in rent a month, so we did it.

I tried turning him in, and every office I contacted didn't seem too thrilled but gave me the general feeling that, "yep it happens all the time, sorry."

pojo2 · #9 10-21-2005, 12:22 PM

We were screwed ....

Yes by YOURSELVES!

with an exorbitant fee for his services that was so high both realtors and the title agent at closing were all telling us they've never seen fees that high for house double the cost of our home.

But in closing you accepted those fees when everyone was trying to tell you to STOP!

We were already in to it so far and the payment was only about $103 more per month than we were paying in rent a month, so we did it.

So what has happened between then and now to make this 103, that wasn't very much to you then, to become the straw that broke the camel's back.

Sell the home while you still have options and buy a home that is within your budgets. I know you do not want to hear this but the next itme you come back here it will be with a foreclosure notice in your hand.

Samm1970 · #10 10-21-2005, 12:50 PM

Or you could look into refinancing the loan to see if you can get the payment down to something a little more comfortable. Stay away from interest only loans or option arms. This time make sure to work with a reputable mortgage company. Call your accountant, your attorney or your insurance broker and ask them to refer you to someone in the mortgage business.

Make sure you understand everything before you decide to move forward. Make sure you get a copy of all the mortgage documents before closing particularly the note, mortgage and HUD-1 Settlement statement. If everything is not as the lender promised rescind the loan during the rescission period, not before the closing.

Here's why. After you have consulted with a lender and it appears there are some viable options that will save you money (and only then), you're going to want to lock into an interest rate. The lenders going to require an application fee to lock. Usually you can put this on a credit card, since you're obviously cash strapped. If you rescind the loan after closing (during the 3 day rescission period) rather than before, the lender is required to give you your application fee back - the entire amount.

Work with a large lender like Wells Fargo, Countrywide or Washington Mutual. They are very compliance minded and will refund your money if you rescind, without question. The big guys always have the watchful eye of the feds on them at all times and they know it.

Good luck!

Gadfly · #11 10-21-2005, 01:14 PM

Selling or refinancing are good options, but you need to educate yourself about the entire process. You also need to learn what the fees asssociated with a loan normally are, then what you lender is proposing to determine if this is a good deal. You should have at least had a truth-in-lending statement when agreed to move forward with the loan process. Did you look at it? Did you compare the numbers?

Yep, it happens all the time 'cause folks make their biggest investment without taking the time to learn about it.

LeGaSu · #12 10-21-2005, 05:25 PM

Quote:

Originally Posted by Gadfly

****************************.... You should have at least had a truth-in-lending statement when agreed to move forward with the loan process. Did you look at it? Did you compare the numbers?

We had the truth-in-lending statement and did review extensively, yet at closing - the HUD-1 Settlement Statement came to us just minutes into the meeting and it was so different from all previous documents due to his fees. We did pause the meeting and called him, and his boss, he claimed that he "wasn't aware the inspections were going in to the closing costs" when he did know b/c I had written documentation in an email I sent him and he responded to it. He dropped his fee only a small amount and claimed our realtor should lower HER fees, or the seller's realtor should lower his, little did he know ours had already both done so b/c of this jerk.

This is addressed to the comment by another poster on this thread who stated "everyone was telling us NO"... well, nobody was telling us no, they were just in disbelief that it had all happened and stated their shock. The seller's reached across the table to shake our hand's at the end of the meeting and handed my husband a $50 bill telling him to take his family to dinner and God Blessings be upon us... their realtor brough us $100 in Cub Foods gift certificates (with permission from our realtor) and our realtor gave us a wooden playset and sent us a refund check for $64.00 which was for some service I cannot remember right now.

We were VERY blessed by those at the table, we are Christian people and we were shown favor by those around us. It didn't "kill" us financially to close on the home, and our situation hasn't changed so drastically that we cannot afford it now more than then.... the ECONOMY (gas prices, utilities costs) are higher on us and it strapped us short one month to pay it all in from one paycheck, that's all. Assuming we are going to foreclosure is a statement that I rebuke!

pojo2 · #13 10-21-2005, 05:54 PM

the ECONOMY (gas prices, utilities costs) are higher on us and it strapped us short one month to pay it all in from one paycheck, that's all. Assuming we are going to foreclosure is a statement that I rebuke!

they will be no less for this month or next and if your heating is gas you are in for a winter shock and you will get even further behind.

If it is only a problem paying all from one paycheck then why not save from the other in order to meet the expense you know is coming up?

You are very typical of someone who ends up with foreclosure facing them, at the very first little sign of trouble you have absloutely NO reserves to kick in with.

Good luck and we see enough cases around here to see the signs of what lies ahead in so many cases.

LeGaSu · #14 10-21-2005, 11:58 PM

If it is only a problem paying all from one paycheck then why not save from the other in order to meet the expense you know is coming up?

That's exactly what we already planned to do, since the mortgage company said they won't accept partial payments. The statement from their representative just shocked me and I found it odd, the reason I posted here to begin with.

they will be no less for this month or next and if your heating is gas you are in for a winter shock and you will get even further behind

Thank you for the reminder, we are already preparing for the upcoming cold months. We are not idiots, regardless of the fact that we went through with a schister mortgage broker's deal. We held our end as we promised and he didn't, he will have to pay for his deeds in life.

You are very typical of someone who ends up with foreclosure facing them, at the very first little sign of trouble you have absloutely NO reserves to kick in with.

Please do not jump to such vast conclusions. We have other resources, we simply choose to not touch them at every need. Thank you.