What is the name of your state? Texas
In April of this year, I went to my bank's website and was looking to find information regarding mortgage payment relief due to covid. As I was unemployed at the time, I was trying to determine what relief my bank was offering. The website had very limited information regarding covid relief but did have an online form to fill out at which point they would evaluate and contact me for what they could offer. A couple of weeks later, we get a letter in the mail stating that we qualified for mortgage relief and that the bank would defer payments for three months after which time the entire deferred amount would be due. The letter also said this was already implemented. Since the whole concept of deferring only to owe the entire lump sum really made no economic sense and is unhelpful, we immediately called the bank and asked why they automatically adjusted the mortgage without any notice and asked they go back to the original scheduled amortization...which they did over the phone. My mortgage lender is also the bank where I have my checking and savings accounts and payments have been on auto draft for about six years.
We just found out that when the bank adjusted the mortgage in April, they also took us off auto draft and unknown to us, they didn't process the May 1st payment. We have a ton of items that go through our accounts and we honestly didn't know the mortgage payment didn't go through. We don't typically open our mortgage statements since these payments just happen, and we really don't verify the timing every month. For the past six years.....there has never been an issue. Additionally, the auto payments did occur in June, July, and August. I just received an alert from a credit reporting agency that the lender reported me for a late payment and has also charged several months of late fees.
I have already escalated the issue with the bank.
Question: Can a lender alter a mortgage without my input? The online form contained no specifics around relief and I'm quite certain had no "opt in" or "approval" language. Further...can a lender also stop the autopayment function and then charge late fees when payment isn't executed? With all the documents you sign related to a mortgage....their should be some minimal level of formality when amending it. Is there any legal liability for the bank and how would one approach if there was?
I realize we would have noticed back in May had we decided to reconcile the mortgage statement for the first time in years...but given covid, the fact both my wife and I just lost our jobs, homeschooling kids, and all the chaos in the world at that time....we didn't think to look. I think I'm finally on the verge of employment and looking to refinance my mortgage....and having a recent "late payment" could be hugely costly in mortgage rates.
In April of this year, I went to my bank's website and was looking to find information regarding mortgage payment relief due to covid. As I was unemployed at the time, I was trying to determine what relief my bank was offering. The website had very limited information regarding covid relief but did have an online form to fill out at which point they would evaluate and contact me for what they could offer. A couple of weeks later, we get a letter in the mail stating that we qualified for mortgage relief and that the bank would defer payments for three months after which time the entire deferred amount would be due. The letter also said this was already implemented. Since the whole concept of deferring only to owe the entire lump sum really made no economic sense and is unhelpful, we immediately called the bank and asked why they automatically adjusted the mortgage without any notice and asked they go back to the original scheduled amortization...which they did over the phone. My mortgage lender is also the bank where I have my checking and savings accounts and payments have been on auto draft for about six years.
We just found out that when the bank adjusted the mortgage in April, they also took us off auto draft and unknown to us, they didn't process the May 1st payment. We have a ton of items that go through our accounts and we honestly didn't know the mortgage payment didn't go through. We don't typically open our mortgage statements since these payments just happen, and we really don't verify the timing every month. For the past six years.....there has never been an issue. Additionally, the auto payments did occur in June, July, and August. I just received an alert from a credit reporting agency that the lender reported me for a late payment and has also charged several months of late fees.
I have already escalated the issue with the bank.
Question: Can a lender alter a mortgage without my input? The online form contained no specifics around relief and I'm quite certain had no "opt in" or "approval" language. Further...can a lender also stop the autopayment function and then charge late fees when payment isn't executed? With all the documents you sign related to a mortgage....their should be some minimal level of formality when amending it. Is there any legal liability for the bank and how would one approach if there was?
I realize we would have noticed back in May had we decided to reconcile the mortgage statement for the first time in years...but given covid, the fact both my wife and I just lost our jobs, homeschooling kids, and all the chaos in the world at that time....we didn't think to look. I think I'm finally on the verge of employment and looking to refinance my mortgage....and having a recent "late payment" could be hugely costly in mortgage rates.
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