When is a mortgage pay off actually paid off?

[BRLAhere]

What is the name of your state?What is the name of your state?What is the name of your state?

Me: Louisiana
Them: Texas

I recently paid off a mortgage balance by wire transferring funds from my bank account to the mortgage company's bank account. They specifically instructed me how to correctly wire the funds and pointed out if the tranfer was made after 2:00 pm, then another day of interest would be tacked on.

I went to my bank at 10:30 am on Good Friday (last week) and explained to my bank about the 2:00 deadline. My bank telephoned the Texas bank, made sure the funds were being sent to the right branch, etc. and the funds transferred by 11:00 am. The Texas bank confirmed the funds had been received.

I point out here, the Texas bank was open for business even though it was Good Friday. However, mortgage company wasn't open that day, so they processed my loan pay-off on the following Monday, charging me 3 extra days of interest (at 10.5%!).

Am I wrong in thinking the payoff should be processed based on when they took possession of my money into their account and not at the covenience of the mortgage company's regular operating hours? This has made me very angry and the mortgage company could care less. They will not credit me the additional 3 days of interest. Do I have a leg to stand on over this matter? If so, what should I do?

Originally Posted by BRLAhere

What is the name of your state?What is the name of your state?What is the name of your state?

Me: Louisiana
Them: Texas

I recently paid off a mortgage balance by wire transferring funds from my bank account to the mortgage company's bank account. They specifically instructed me how to correctly wire the funds and pointed out if the tranfer was made after 2:00 pm, then another day of interest would be tacked on.

I went to my bank at 10:30 am on Good Friday (last week) and explained to my bank about the 2:00 deadline. My bank telephoned the Texas bank, made sure the funds were being sent to the right branch, etc. and the funds transferred by 11:00 am. The Texas bank confirmed the funds had been received.

I point out here, the Texas bank was open for business even though it was Good Friday. However, mortgage company wasn't open that day, so they processed my loan pay-off on the following Monday, charging me 3 extra days of interest (at 10.5%!).

Am I wrong in thinking the payoff should be processed based on when they took possession of my money into their account and not at the covenience of the mortgage company's regular operating hours? This has made me very angry and the mortgage company could care less. They will not credit me the additional 3 days of interest. Do I have a leg to stand on over this matter? If so, what should I do?

Q: Am I wrong in thinking the payoff should be processed based on when they took possession of my money into their account and not at the covenience of the mortgage company's regular operating hours?

A: No, you are not wrong. I don't know the laws in LA, but in some states, you can demand a release of a mortgage after it has been paid, and if the mortgage company does not release it, then they can be liable for damages of some kind. The statutes must be followed exactly.

Get a lawyer in LA and make sure he follows the statute in your state (if there even is one) to the letter of the law.

If there is NOT such a statute, then ask the lawyer if you can sue them for slander of title or some such.

Make sure you get an excellent real estate lawyer; you have a good case (but of course there may not be a lot of bucks involved).

[BRLAhere]

Thank you for the input.

Wouldn't the statutes of TX apply here since the mortgage company is in Texas? To further complicate this matter, the actual property that the mortgage company financed for me is located in South Carolina (a house).

I live in LA, have a property in SC that was financed by a TX mortgage company.....sheeez

Originally Posted by BRLAhere

Thank you for the input.

Wouldn't the statutes of TX apply here since the mortgage company is in Texas? To further complicate this matter, the actual property that the mortgage company financed for me is located in South Carolina (a house).

I live in LA, have a property in SC that was financed by a TX mortgage company.....sheeez

I suspect the mortgage is governed by SC laws. Get an SC attorney.