Lender Messing With Mortgage Payments
I have a lender that is causing problems. Due to a clerical error a late fee was applied to my account a couple of months ago. I disputed the late fee and was told to go ahead and send in my undisputed payment as the dispute was worked through.
Some reason or the other, my electronic payment was rejected by this lender and I was not vigilant enoughj to catch this. All of a sudden, there is a 30 day late and another late fee on the account.
Called the customer service manager and he indicated that they would not accept any payment less than the PITI plus late fees (which I am still disputing). Conversation did not go well and he insisted that he would force me into foreclosure if I did not send the full payment.
Can they legally do this? I reviewed my note and it does not say anything about late fees becoming a part of the PITI only that late fees can be assessed. Can they truly do this? Or is this just some cowboy Manager screwing with me?
Opinions appreciated.
Thanks.
JS.
smithj2,
What do your loan documents say about how payments are applied, and how insufficient payments are handled.
I bet your loan documents says that payments are first applied to late fees, then to interest, and lastly to principal. I am guessing that your loan documents also say that any payment less than the amount of principal and interest due is insufficient and will be refused.
If this is the case, then it is the combination of these two rules that puts you in the position you are in. When you sent in your first payment, it was first applied to late fees, which did not leave enough to pay the principal and interest in full. Your payment was insufficient and refused.
My guess at this point is that all you can do is dispute the late fee(s) after you have made all payments in full to include the late fees.
Forget the rent to own thing. Unless you make a deal in advance, the HOA will see right through it and keep charging you rental fees anyway.
The best thing you can do is take the HOA president out to dinner, and plead for a reduction.
Ive learned that its legally impossible (because they make you pay their legal fees) to challenge a HOA or Condo fee while you still have ownership.
Good luck
I am saying that; I pay the property fee like everybody else does, then my tenant has to go pay a tenant fee = to an annual assessment of each lot = Double-Dip!
In this community, they assess a fee for each lot. In 2002 (as with many years previous) it was below 500 per year. When I went to rent out the property, I was informed that my tenants had to come and pay a tenant fee. I found that it was equal to what I pay for the property == Double Dip on rentals.
Interestingly, a few years later I had a tenant who was building on his lot in the community. They did not make him pay the tenant fee since he was also an owner.
In the last few years the assessment has shot up to almost 1200 per lot. I pay that on my properties. If I require my tenants to also pay it, I am reducing my rent by 100 per month in a depressed market.
I was wondering if I always did a rent to own if it would give them equitable title and they were technically owners? So, no more double dipping? [ Edited by ceinvests on Date 02/23/2009 ]
if the banks accepted your offer can you go for or threaten specific performance?
That is what I thought...
because my offer was accepted and I signed extentions over and over and they cashed my 1K deposit and did not even return it until around when the closings must have happened. They had put wrong info. (surprise) in the mls for closing date.
Is it too late ?
Would it be cost effective?