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Mortgage Dispute

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Junior Member
What is the name of your state? Virginia but mortgage company is in TN

About a month and a half ago my mortgage company claimed that I was a full payment behind which is $599.60. I didn’t question them because they threatened me with legal recourse so I sent them what I could at the time which was $400. I am still getting notices and phone calls stating that I am still $599.60 behind. I requested a statement of my account and this is what I have found: they have applied my $400 payment to an overage account. In addition to that I have $21.31 in the overage account. Why are they not applying to that to my mortgage making me only $178.29 behind.

Secondly, beginning in January 2003 I changed my payment option to monthly payments in the amount of $599.60 instead of biweekly payments in the amount of $284.57. They had me fax them a signed note stating that I would be making my monthly payment on the 15th of each month in the amount of $599.60 beginning in January. In February they called me and told me that I was $284.57 behind. Again I didn’t question it, I paid it because, again, I was threatened with foreclosure. I do question it now that I have had the opportunity to look at the statement they sent me. According to the statement they recorded the $284.57 payment as a January 10th payment. This has me paying $884.17 in the month of January, the month that I was to begin my monthly payments. I asked them to apply this to the amount that I was behind since it was obviously an overpayment. This was their response, “According to the history, Vanderbilt received a written request to remove the loan from the biweekly program. When a loan is removed, the last payment date is considered in comparison to the monthly installment contract. Per your installment contract, the first payment due date is 6/15/01. The 15th is used as the base to determine the next due date. Since the last payment made was the 1/10/03, and the new monthly due date is always rolled ahead, the next monthly installment due was the 1/15/03 payment. Two biweekly payments fell in the monthly time frame of 12/15/02 to 1/15/03, so no credit is due.” When I entered into the verbal contract with Chris (my account representative) which changed my biweekly payment program to a monthly payment program this was not told to me. What was told to me was that I was to make one monthly payment in the amount of $599.60 beginning in January. I did sign a fax agreeing to one monthly payment in the amount of $599.60. I was not told nor did I sign a contract agreeing to the statement in the 11/5/03 letter. I was not told nor did I sign a contract agreeing to two monthly payments, one in the amount of $284.57 and one in the amount of $599.60. Therefore, I made an overpayment in the amount of $284.57.

With the $421.31 in the overage account and the January 10th $284.57 payment I am actually ahead. They are refusing to agree to this, what can I do? Also, can they foreclose on my home while this is in dispute?

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