At wits end with mortgage company issues

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michaeljc70
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At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 11:07 am

My mortgage company has repeatedly made mistakes (I am trying to keep this short and will leave it at that).

They are now saying 1) my Oct payment is late 2) charging me a $77 late fee 3) Put my additional principal payment in "escrow" rather than applying it to my balance. I have called and the wait times are bad. When I got through I spent 40 minutes trying to explain the most simple thing (I made the payment 10/1). She said she would fix it. It isn't fixed. I emailed customer service and they ignored 75% of what I said and said I owe for Oct.

I made a full payment on 8/31 and full payment on 10/1 (as well as additional principal in a separate check designated as such). This is not in dispute as the payments show on their website.

What do I do? I am wasting so much time and so frustrated. Half the time their online contact system doesn't work (website issue which I alerted them to). Should I file a complaint with the CFPB? I would refinance if I thought I would qualify (I'm not working now and doubt I'd qualify) just to get away from them.

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Re: At wits end with mortgage company issues

Post by Jack FFR1846 » Fri Oct 04, 2019 11:16 am

michaeljc70 wrote:
Fri Oct 04, 2019 11:07 am
Should I file a complaint with the CFPB?
Yes. Document everything. Date each payment was made. Letters or online statements that these were late. Fees charged. You note a couple dates you made payments but not when the payment was due.
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dm200
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Re: At wits end with mortgage company issues

Post by dm200 » Fri Oct 04, 2019 11:18 am

michaeljc70 wrote:
Fri Oct 04, 2019 11:07 am
My mortgage company has repeatedly made mistakes (I am trying to keep this short and will leave it at that).
They are now saying 1) my Oct payment is late 2) charging me a $77 late fee 3) Put my additional principal payment in "escrow" rather than applying it to my balance. I have called and the wait times are bad. When I got through I spent 40 minutes trying to explain the most simple thing. She said she would fix it. It isn't fixed. I emailed customer service and they ignored 75% of what I said and said I owe for Oct.
I made a full payment on 8/31 and full payment on 10/1 (as well as additional principal in a separate check designated as such). This is not in dispute as the payments show on their website.
What do I do? I am wasting so much time and so frustrated. Half the time their online contact system doesn't work (website issue which I alerted them to). Should I file a complaint with the CFPB? I would refinance if I thought I would qualify (I'm not working now and doubt I'd qualify) just to get away from them.
I would put everything in writing - to maintain a paper or electronic trail. I would focus primarily on the alleged October late payment issue and get that resolved.

Then, at least for a good while, only make the regular, monthly mortgage payments - as specified in your mortgage documents. Pay a few days earlier than the due date in way(s) that can be documented (such as certified mail for a check, or bank records for electronic). Perhaps, over time, this mortgage company will get things cleared up.

Is this a mortgage where the servicing of the mortgage has been sold or transferred to another entity?

I am a great believer in only having a mortgage with a lender that will keep the servicing of the mortgage (even if they sell the actual mortgage itself). We have refinanced a first mortgage several times - always with Navy Federal Credit Union. Navy Federal does not sell the servicing of the mortgage. We have never had any problems or issues with Navy Federal.

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michaeljc70
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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 11:19 am

Jack FFR1846 wrote:
Fri Oct 04, 2019 11:16 am
michaeljc70 wrote:
Fri Oct 04, 2019 11:07 am
Should I file a complaint with the CFPB?
Yes. Document everything. Date each payment was made. Letters or online statements that these were late. Fees charged. You note a couple dates you made payments but not when the payment was due.
I make the payment the last day of the month. It is due the 1st of the month but not late until the 17th. The payment on 10/1 was due to the last day of the month being a weekend.

I have documented it all. The thing is, none of the payments or dates are even in dispute.

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 11:22 am

dm200 wrote:
Fri Oct 04, 2019 11:18 am
michaeljc70 wrote:
Fri Oct 04, 2019 11:07 am
My mortgage company has repeatedly made mistakes (I am trying to keep this short and will leave it at that).
They are now saying 1) my Oct payment is late 2) charging me a $77 late fee 3) Put my additional principal payment in "escrow" rather than applying it to my balance. I have called and the wait times are bad. When I got through I spent 40 minutes trying to explain the most simple thing. She said she would fix it. It isn't fixed. I emailed customer service and they ignored 75% of what I said and said I owe for Oct.
I made a full payment on 8/31 and full payment on 10/1 (as well as additional principal in a separate check designated as such). This is not in dispute as the payments show on their website.
What do I do? I am wasting so much time and so frustrated. Half the time their online contact system doesn't work (website issue which I alerted them to). Should I file a complaint with the CFPB? I would refinance if I thought I would qualify (I'm not working now and doubt I'd qualify) just to get away from them.
I would put everything in writing - to maintain a paper or electronic trail. I would focus primarily on the alleged October late payment issue and get that resolved.

Then, at least for a good while, only make the regular, monthly mortgage payments - as specified in your mortgage documents. Pay a few days earlier than the due date in way(s) that can be documented (such as certified mail for a check, or bank records for electronic). Perhaps, over time, this mortgage company will get things cleared up.

Is this a mortgage where the servicing of the mortgage has been sold or transferred to another entity?

I am a great believer in only having a mortgage with a lender that will keep the servicing of the mortgage (even if they sell the actual mortgage itself). We have refinanced a first mortgage several times - always with Navy Federal Credit Union. Navy Federal does not sell the servicing of the mortgage. We have never had any problems or issues with Navy Federal.
Yes, it was a sold loan.

My bank electronically makes the payments. I don't trust them doing an autopay. The dates/amounts of payments are not in dispute. Their system is just a mess.

setancre
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Re: At wits end with mortgage company issues

Post by setancre » Fri Oct 04, 2019 11:23 am

Is it possible they didn't properly record a payment over the summer, and are applying everything as if it is one month late now?

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 11:26 am

setancre wrote:
Fri Oct 04, 2019 11:23 am
Is it possible they didn't properly record a payment over the summer, and are applying everything as if it is one month late now?
I suppose, but I didn't get any notification of anything being late. The statements don't reflect anything being late. I haven't got the Oct statement yet.

The last statement dated 9/4 says $1418 due 10/1. Their site shows a payment for that amount on 10/1.

DaftInvestor
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Re: At wits end with mortgage company issues

Post by DaftInvestor » Fri Oct 04, 2019 11:28 am

You made mention of a "check". Do they have online payment options? With my mortgage I found the online payment allowed me to designate transfers exactly how I wanted them allocated without error (possible your company doesn't allow this). When you mail in a check you are relying on a person to decide how to make the allocations for you - online transfers may allow you to choose via a drop-down and be less prone to error.

miamivice
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Re: At wits end with mortgage company issues

Post by miamivice » Fri Oct 04, 2019 11:29 am

Easiest solution is just to pay them what they think is due. Ask them to waive the late charge as a one-time courtesy.

As long as they aren't losing your payments, eventually everything will get straightened out. Most important thing is to ensure their system considers you current on the loan.

setancre
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Re: At wits end with mortgage company issues

Post by setancre » Fri Oct 04, 2019 11:33 am

michaeljc70 wrote:
Fri Oct 04, 2019 11:26 am
setancre wrote:
Fri Oct 04, 2019 11:23 am
Is it possible they didn't properly record a payment over the summer, and are applying everything as if it is one month late now?
I suppose, but I didn't get any notification of anything being late. The statements don't reflect anything being late. I haven't got the Oct statement yet.

The last statement dated 9/4 says $1418 due 10/1. Their site shows a payment for that amount on 10/1.
That's annoying. Sorry. Our mortgage servicing has been sold 2x in 3 years, and it is frustrating as a homeowner not to have any control or say in the process. The 3 servicing companies we've had (2 mortgage companies, 1 full-service bank) have had totally different systems, varying levels of sophistication with the website/payment options, and have ranged from great to terrible at managing our escrow payments in a timely manner.

Hopefully this gets resolved for you soon; good luck!

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 11:37 am

DaftInvestor wrote:
Fri Oct 04, 2019 11:28 am
You made mention of a "check". Do they have online payment options? With my mortgage I found the online payment allowed me to designate transfers exactly how I wanted them allocated without error (possible your company doesn't allow this). When you mail in a check you are relying on a person to decide how to make the allocations for you - online transfers may allow you to choose via a drop-down and be less prone to error.
I pay it through my bank's online banking. I don't mail them a check. According to my bank's website they pay the mortgage company electronically and not via check. Extra principal payments contain "Prepayment" on the memo line as designated in my loan agreement.

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RickBoglehead
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Re: At wits end with mortgage company issues

Post by RickBoglehead » Fri Oct 04, 2019 11:44 am

When I have these types of issues, I get on the web and the find the company's info. I look for the senior executives and contact them directly. If their email address is not their, I guess at it. John_Executive@mortgagecompany.com, John.Executive@mortgagecompany.com, JExecutive@mortgagecompany.com.

One of the banks that many like on this site gave me some problems. I found the head of retail's info, contacted that person directly, got an "Office of the President" callback, and everything resolved.

Of course that can also fail - it did with Fidelity when I went directly to Abby Johnson's office. So I did what I promised and pulled all my money from Fidelity.

Good luck!
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Re: At wits end with mortgage company issues

Post by Jack FFR1846 » Fri Oct 04, 2019 11:48 am

I think also, pre-emptively, I'd change my pay date to a week before the due date. It's how all my auto pays are set up.
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Re: At wits end with mortgage company issues

Post by Dave55 » Fri Oct 04, 2019 11:51 am

RickBoglehead wrote:
Fri Oct 04, 2019 11:44 am
When I have these types of issues, I get on the web and the find the company's info. I look for the senior executives and contact them directly. If their email address is not their, I guess at it. John_Executive@mortgagecompany.com, John.Executive@mortgagecompany.com, JExecutive@mortgagecompany.com.

One of the banks that many like on this site gave me some problems. I found the head of retail's info, contacted that person directly, got an "Office of the President" callback, and everything resolved.

Of course that can also fail - it did with Fidelity when I went directly to Abby Johnson's office. So I did what I promised and pulled all my money from Fidelity.

Good luck!
+1 this approach usually works in my experience too. I ran up extra charges on United Airlines due to illness, having to cancel and rebook about 3 times. I emailed the top executives there, got a call 2 hours later from what is called "Executive Services", problem solved, refund issued.

Dave

HomeStretch
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Re: At wits end with mortgage company issues

Post by HomeStretch » Fri Oct 04, 2019 11:59 am

Once you get this straightened out, is there an opportunity to refinance for a lower rate and, as an added bonus, get a new mortgage holder?

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 12:11 pm

HomeStretch wrote:
Fri Oct 04, 2019 11:59 am
Once you get this straightened out, is there an opportunity to refinance for a lower rate and, as an added bonus, get a new mortgage holder?
Doubtful. I am not working so I doubt I'd qualify (not drawing SS, not drawing from IRAs yet). When I looked into it, I could get a slightly lower rate. I have a 15 year at 3.375% now. I have about 8 years left on it.

The other thing is, I could wind up right back with them. They are the 3rd largest servicer in the country according to their website.
Last edited by michaeljc70 on Fri Oct 04, 2019 12:13 pm, edited 1 time in total.

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dm200
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Re: At wits end with mortgage company issues

Post by dm200 » Fri Oct 04, 2019 12:12 pm

HomeStretch wrote:
Fri Oct 04, 2019 11:59 am
Once you get this straightened out, is there an opportunity to refinance for a lower rate and, as an added bonus, get a new mortgage holder?
If you take that route, then I suggest only using a mortgage lender that does NOT sell the servicing of the mortgage.

spoco79
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Re: At wits end with mortgage company issues

Post by spoco79 » Fri Oct 04, 2019 12:17 pm

Ive had a similar issue in the past.

Document everything. Put together an email with a timeline and explain everything. Find the top person at the company you can find (http://elliott.org/ is an excellent resource, if the bank is local - bank officers are notorious for having their contact info out there).

Here is what happened to me.

Within a couple of hours, someone from Wells Fargo's executive office contacted me. (I emailed a couple of SVPs). They assured me the issue would be taken care of. By the next morning, the web portal appeared correct and I received another call confirming that the issue had been corrected and they apologized for the inconvenience and thanked me for being a customer.

Sometimes you got to go to to top to make the crap roll downhill.

Tribonian
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Re: At wits end with mortgage company issues

Post by Tribonian » Fri Oct 04, 2019 12:19 pm

Social media shaming sometimes helps; I’d start with Twitter, see if there is an individual who responds to on-line complaints and contact them directly, then go public with any unresolved complaints.

batpot
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Re: At wits end with mortgage company issues

Post by batpot » Fri Oct 04, 2019 12:33 pm

I've seen this happen when mortgage payments are made before the 1st of the month. It's should be resolvable with a phone call.

Given the 15 day grace period, there's no reason to pay before the 1st. If the 1st falls on a weekend, make the payment post on the Monday or Tuesday after. I've never had an issue doing this.

Also you do need to pay close attention to additional principal payments. Most lenders are honest and recognize there is only one way to apply additional payments (i.e. to the principal), but some are not.

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 1:18 pm

My 8/2 statement says I was charged $985.89 interest for the month. This is completely wrong. The interest is around $320/mo. However, when I look at the online payment activity, I was charged $323.72 (which seems correct) for the same period. Since the running balance seems correct (deducting $323 instead of $985) it is probably being recorded correctly. This is the kind of stuff I keep finding over and over.

To give you an idea, this is how they display my 7/1 payment on their website. If you figure it out, let me know. To be clear, I made one regular payment of $1427 and one principal payment of $150.

Image

mariezzz
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Re: At wits end with mortgage company issues

Post by mariezzz » Fri Oct 04, 2019 1:57 pm

If you're in a state where attorney general's office is consumer oriented, write to them.
You could write to CFPB, but under current administration, it isn't very consumer oriented.
Write a letter of complaint, detailing these problems, to mortgage servicer and copy your congresspeople, senators, and state legislative representatives, plus the attorney general of your state.

Consider refinancing or paying off mortgage if the time you're spending trying to correct these problems warrants it.

There are federal laws that protect you and your mortgage loan is a contract. If they're violating the terms of the contract, they can be held liable. Others with legal expertise in this area may have more to say.

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Re: At wits end with mortgage company issues

Post by dknightd » Fri Oct 04, 2019 2:03 pm

michaeljc70 wrote:
Fri Oct 04, 2019 1:18 pm
My 8/2 statement says I was charged $985.89 interest for the month. This is completely wrong. The interest is around $320/mo. However, when I look at the online payment activity, I was charged $323.72 (which seems correct) for the same period. Since the running balance seems correct (deducting $323 instead of $985) it is probably being recorded correctly. This is the kind of stuff I keep finding over and over.

To give you an idea, this is how they display my 7/1 payment on their website. If you figure it out, let me know. To be clear, I made one regular payment of $1427 and one principal payment of $150.

Image
It looks like they credited your payments correctly. Then undid it, then redid it, then undid it, then eventually redid it. So in the end your payment was credited properly. And all on the same day.

I went through a similar problem lately. Credit union that used to hold my mortgage changed web service provider. It was a mess for several weeks while they tried to sort things out. In the end it all worked out. I thought my credit union held and serviced my mortgage. I do not remember them informing me it had been sold. One of the things that appealed to me was this credit union claimed not to sell mortgages. But on the new web site my mortgage is listed as externally serviced. They could have changed their mind, or they could just do that for accounting reasons. I service my mortgage though their web page. I have monthly payments scheduled. When I was working I just paid what was due. Now I'm retired I'm working toward retiring that debt asap (without bumping me up a tax bracket from withdrawals on tax deferred accounts)

You are at wits end after just 4 days. Payment was made 10/1, today is 10/4. You likely just need to give them time to sort this out. You can document everything. They can document everything. The documents apparently agree. Let them sort it out.

HomeStretch
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Re: At wits end with mortgage company issues

Post by HomeStretch » Fri Oct 04, 2019 2:07 pm

It’s good that you are on top of this. After this is resolved, keep your own loan amortization schedule in Excel so you can verify monthly the principal balance remaining and the annual interest paid per the 1099.

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michaeljc70
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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 2:43 pm

dknightd wrote:
Fri Oct 04, 2019 2:03 pm
michaeljc70 wrote:
Fri Oct 04, 2019 1:18 pm
My 8/2 statement says I was charged $985.89 interest for the month. This is completely wrong. The interest is around $320/mo. However, when I look at the online payment activity, I was charged $323.72 (which seems correct) for the same period. Since the running balance seems correct (deducting $323 instead of $985) it is probably being recorded correctly. This is the kind of stuff I keep finding over and over.

To give you an idea, this is how they display my 7/1 payment on their website. If you figure it out, let me know. To be clear, I made one regular payment of $1427 and one principal payment of $150.

Image
It looks like they credited your payments correctly. Then undid it, then redid it, then undid it, then eventually redid it. So in the end your payment was credited properly. And all on the same day.

I went through a similar problem lately. Credit union that used to hold my mortgage changed web service provider. It was a mess for several weeks while they tried to sort things out. In the end it all worked out. I thought my credit union held and serviced my mortgage. I do not remember them informing me it had been sold. One of the things that appealed to me was this credit union claimed not to sell mortgages. But on the new web site my mortgage is listed as externally serviced. They could have changed their mind, or they could just do that for accounting reasons. I service my mortgage though their web page. I have monthly payments scheduled. When I was working I just paid what was due. Now I'm retired I'm working toward retiring that debt asap (without bumping me up a tax bracket from withdrawals on tax deferred accounts)

You are at wits end after just 4 days. Payment was made 10/1, today is 10/4. You likely just need to give them time to sort this out. You can document everything. They can document everything. The documents apparently agree. Let them sort it out.
I've had problems going back 2 1/2 years. As I said, this is just one incident. I could list 10 others.

When you are on hold and talking to someone on the phone for 45 minutes over a simple problem explaining what is very obvious (you got and recorded the 10/1 payment on 10/1...it isn't late) and they hang up and didn't fix what they said they would fix......

When you email a bunch of very detailed issue and they ignore 75% of what you said and fix nothing....

When this could impact a perfect credit score....

When half the time you cannot access their online messaging system due to website issues (apparently not enough licenses)....

When you don't receive documents you are supposed to..... I get emails saying I have a new document to view. Go to the website and there is nothing. I've turned paperless off today as it doesn't work.

I know mistakes happen. However, when I call or write and explain a simple problem I expect it to be fixed and not have to put 4 hours into it.

vested1
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Re: At wits end with mortgage company issues

Post by vested1 » Fri Oct 04, 2019 3:09 pm

I ran into this with an unscrupulous mortgage lender who bought my loan from a large bank right before the closing of a refinance with a different lender. The new mortgage holder refused to provide a payoff amount to the new lender of the refinance, causing me to go 3 months past the escrow date, which resulted in the new lender renegotiating the interest, costing me .5%. The mortgage company who bought the loan made all kinds of excuses about their computer system being updated, about problems with their filing system, claims that they had lost my paperwork, on and on, all of which they said was causing the payoff quote to be delayed. Although there is a regulation concerning the timely quote of a payoff amount, my pointing that out had no effect.

They also told me I was late on my loan payments, and that they were going to foreclose. I had never been late on a mortgage payment ever, and had the cancelled checks to prove it. The threats continued to escalate however, and every time I called I was either cut off or transferred to someone who gave me a totally different story, I documented everything. I always wrote down the name of the person I talked to, but invariably when I called back, I was told that no one by that name worked there.

I did some searching on the internet and found that this company was notorious for these types of shenanigans and was one of the most egregious offenders of inappropriate foreclosures in the country. The number of complaints I found were staggering and the stories of some of the seniors who lost their homes to this and similar fraud were heartbreaking, some following the same pattern I was experiencing.

I went the route suggested here and other places by writing to the State Attorney General, the Better Business Bureau, and my elected officials, all to no avail. Meanwhile the threatening emails and letters were multiplying, and although my checks were cashed the company showed no proof of payment.

I finally did some more digging and found out which government agency licensed mortgage companies to do business in the State, and contacted them, copying the mortgage company. Like magic my problems were immediately rectified, all records were cleared up showing that I was current on the mortgage, and the payoff amount was sent to the new lender within a day of me sending the email.

The company, under various names, eventually made national news and was heavily fined. The name of our current Secretary of the Treasury was prominent throughout the proceedings, most notably for the abuse of elders being robbed of their homes via reverse mortgages.

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Re: At wits end with mortgage company issues

Post by goodlifer » Fri Oct 04, 2019 3:14 pm

I had to refinance to get away from Ocwen's incompetence. I had several little problems with them, then they decided to raise my mortgage payment over $1,000 a month to cover property taxes. My taxes went up $250 that year and the extra payments almost doubled my mortgage. Every time I called, I would get a letter 3 days later saying that my mortgage was recalculated and I now owe more. I honestly do not know how they are still in business. Now I always insist on no escrow. Life is so much easier.

I would report them to your state's AG, and put "principal prepayment" on the payments instead of just "prepayment".

batpot
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Re: At wits end with mortgage company issues

Post by batpot » Fri Oct 04, 2019 3:39 pm

goodlifer wrote:
Fri Oct 04, 2019 3:14 pm
I had to refinance to get away from Ocwen's incompetence. I had several little problems with them, then they decided to raise my mortgage payment over $1,000 a month to cover property taxes. My taxes went up $250 that year and the extra payments almost doubled my mortgage. Every time I called, I would get a letter 3 days later saying that my mortgage was recalculated and I now owe more. I honestly do not know how they are still in business. Now I always insist on no escrow. Life is so much easier.

I would report them to your state's AG, and put "principal prepayment" on the payments instead of just "prepayment".
I had Ocwen on a loan once. Rated F on BBB.
Brutal...like this:

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Re: At wits end with mortgage company issues

Post by mhalley » Fri Oct 04, 2019 4:01 pm

Maybe I'm old, but I would never schedule payments this way. I would have the payment scheduled to be cleared well before the due date. Problems happen, and I would want to be able to fix them before the payment was late.

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Re: At wits end with mortgage company issues

Post by mhalley » Fri Oct 04, 2019 4:01 pm

Duplicate post

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Nate79
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Re: At wits end with mortgage company issues

Post by Nate79 » Fri Oct 04, 2019 4:02 pm

I don't know if it at all helps but I always pay thru the mortgage companies website or if mailing a check I would only use their coupon books that specify extra principle. I would never pay thru my checking account bill pay as that is just inviting trouble (multiple threads of examples of this happening).

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Re: At wits end with mortgage company issues

Post by LadyGeek » Fri Oct 04, 2019 4:24 pm

This thread is now in the Personal Finance (Not Investing) forum (mortgage).
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michaeljc70
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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 4:34 pm

mhalley wrote:
Fri Oct 04, 2019 4:01 pm
Maybe I'm old, but I would never schedule payments this way. I would have the payment scheduled to be cleared well before the due date. Problems happen, and I would want to be able to fix them before the payment was late.
The payment made electronically by my bank is guaranteed. My bank will pay any late fees if they make it late. I trust Chase a lot more than I trust the mortgage company. I did move the payment due date up a few days based on suggestions here today just to compensate for incompetence on the receiving end. "Real" late payments isn't really the issue. It is their recordkeeping and customer service.

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 4:52 pm

batpot wrote:
Fri Oct 04, 2019 12:33 pm
I've seen this happen when mortgage payments are made before the 1st of the month. It's should be resolvable with a phone call.

Given the 15 day grace period, there's no reason to pay before the 1st. If the 1st falls on a weekend, make the payment post on the Monday or Tuesday after. I've never had an issue doing this.

Also you do need to pay close attention to additional principal payments. Most lenders are honest and recognize there is only one way to apply additional payments (i.e. to the principal), but some are not.
I know there is no late fee but isn't there interest? The loan docs don't really stipulate that.

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Re: At wits end with mortgage company issues

Post by Golf maniac » Fri Oct 04, 2019 8:53 pm

File a complaint with CFPB but also file a complaint with their primary regulator. If they are a national bank (think BofA, Wells, Chase, Citi, etc) then it is the OCC. if it is a state bank that is a Fed Member then the Federal Reserve. The regulators have online filing options and you will get a written response on the issue. Also, contact the office of the president / CEO of the bank. They usually have an Executive complaint division that handle complaints. If all that fails, which it should not if your facts are correct, there is always mediation for disputes.

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Re: At wits end with mortgage company issues

Post by mariezzz » Fri Oct 04, 2019 8:55 pm

mhalley wrote:
Fri Oct 04, 2019 4:01 pm
Maybe I'm old, but I would never schedule payments this way. I would have the payment scheduled to be cleared well before the due date. Problems happen, and I would want to be able to fix them before the payment was late.
Payment isn't considered 'late' until the 15th on most mortgages these days.

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Re: At wits end with mortgage company issues

Post by mariezzz » Fri Oct 04, 2019 8:56 pm

michaeljc70 wrote:
Fri Oct 04, 2019 4:52 pm
batpot wrote:
Fri Oct 04, 2019 12:33 pm
I've seen this happen when mortgage payments are made before the 1st of the month. It's should be resolvable with a phone call.

Given the 15 day grace period, there's no reason to pay before the 1st. If the 1st falls on a weekend, make the payment post on the Monday or Tuesday after. I've never had an issue doing this.

Also you do need to pay close attention to additional principal payments. Most lenders are honest and recognize there is only one way to apply additional payments (i.e. to the principal), but some are not.
I know there is no late fee but isn't there interest? The loan docs don't really stipulate that.
The loan docs will very clearly state this if the loan has been originated in the last 10 years. It should be very clearly stated on the monthly statement from your loan servicer as well.

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 8:58 pm

mariezzz wrote:
Fri Oct 04, 2019 8:56 pm
michaeljc70 wrote:
Fri Oct 04, 2019 4:52 pm
batpot wrote:
Fri Oct 04, 2019 12:33 pm
I've seen this happen when mortgage payments are made before the 1st of the month. It's should be resolvable with a phone call.

Given the 15 day grace period, there's no reason to pay before the 1st. If the 1st falls on a weekend, make the payment post on the Monday or Tuesday after. I've never had an issue doing this.

Also you do need to pay close attention to additional principal payments. Most lenders are honest and recognize there is only one way to apply additional payments (i.e. to the principal), but some are not.
I know there is no late fee but isn't there interest? The loan docs don't really stipulate that.
The loan docs will very clearly state this if the loan has been originated in the last 10 years. It should be very clearly stated on the monthly statement from your loan servicer as well.
The statements say a late fee will be charges after the 17th. They say nothing about interest. The loan documents are vague on how interest is calculated. I have reviewed them all.

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Re: At wits end with mortgage company issues

Post by mariezzz » Fri Oct 04, 2019 9:00 pm

Do some research on the internet. Most mortgage loans come with a 15 day grace period.
Mortgage interest is accrued per month - not per day.

This isn't to say you should wait that long to resolve it, but if the money has been taken from your bank, then you have evidence the payment was made.
Your mortgage servicer is very incompetent.
Last edited by mariezzz on Fri Oct 04, 2019 9:01 pm, edited 1 time in total.

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 9:01 pm

mariezzz wrote:
Fri Oct 04, 2019 9:00 pm
Do some research on the internet. Most mortgage loans come with a 15 day grace period.
Mortgage interest is accrued per month - not per day.
Understood. But if the payment is due the 1st and you pay the 15th, is the interest the same?

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Re: At wits end with mortgage company issues

Post by mariezzz » Fri Oct 04, 2019 9:02 pm

Mortgage interest is accrued per month - not per day.

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Re: At wits end with mortgage company issues

Post by michaeljc70 » Fri Oct 04, 2019 9:05 pm

mariezzz wrote:
Fri Oct 04, 2019 9:02 pm
Mortgage interest is accrued per month - not per day.
So it makes no sense to pay until mid-month?

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Re: At wits end with mortgage company issues

Post by LadyGeek » Fri Oct 04, 2019 9:56 pm

I removed an off-topic post. As a reminder, see: General Etiquette
At all times we must conduct ourselves in a respectful manner to other posters.
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Re: At wits end with mortgage company issues

Post by LadyGeek » Fri Oct 04, 2019 9:58 pm

michaeljc70 - Ignore how the interest rate is calculated. You're getting good advice. Pay attention to the members who are recommending you make your payments earlier and document everything.

Getting the payments submitted on time is first. Then, go track down your problem and get it fixed.

If you have any further questions, don't hesitate to ask.
Wiki To some, the glass is half full. To others, the glass is half empty. To an engineer, it's twice the size it needs to be.

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Re: At wits end with mortgage company issues

Post by KlangFool » Fri Oct 04, 2019 10:12 pm

michaeljc70 wrote:
Fri Oct 04, 2019 4:34 pm
mhalley wrote:
Fri Oct 04, 2019 4:01 pm
Maybe I'm old, but I would never schedule payments this way. I would have the payment scheduled to be cleared well before the due date. Problems happen, and I would want to be able to fix them before the payment was late.
The payment made electronically by my bank is guaranteed. My bank will pay any late fees if they make it late. I trust Chase a lot more than I trust the mortgage company. I did move the payment due date up a few days based on suggestions here today just to compensate for incompetence on the receiving end. "Real" late payments isn't really the issue. It is their recordkeeping and customer service.
michaeljc70,

But, that did not help you in this case. I ran into this kind of problem when I paid my daughter's rent. I paid earlier by 10 days but they deposited the check into the wrong renter's account. In this case, because of the bank mailed them a check and stored the scanned and deposited check image into my account, I had the proof that they were wrong.

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Re: At wits end with mortgage company issues

Post by KlangFool » Fri Oct 04, 2019 10:18 pm

Nate79 wrote:
Fri Oct 04, 2019 4:02 pm
I don't know if it at all helps but I always pay thru the mortgage companies website or if mailing a check I would only use their coupon books that specify extra principle. I would never pay thru my checking account bill pay as that is just inviting trouble (multiple threads of examples of this happening).
Nate79,

1) How would that help you if the mortgage company messed up? It is all in their system. You have nothing to prove that they were wrong.

2) Even worse, if their system pulls an extra 10K from your checking account, you would have to chase the money back from them. Meanwhile, checks and payment might be bouncing in your checking account.

3) I use my bank's bill pay. I push my payment out. They stored the deposited check image in my account if they need to mail a check.

KlangFool

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Re: At wits end with mortgage company issues

Post by whodidntante » Sat Oct 05, 2019 6:34 am

michaeljc70 wrote:
Fri Oct 04, 2019 9:01 pm
mariezzz wrote:
Fri Oct 04, 2019 9:00 pm
Do some research on the internet. Most mortgage loans come with a 15 day grace period.
Mortgage interest is accrued per month - not per day.
Understood. But if the payment is due the 1st and you pay the 15th, is the interest the same?
Yes

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Re: At wits end with mortgage company issues

Post by DaftInvestor » Sat Oct 05, 2019 7:37 am

michaeljc70 wrote:
Fri Oct 04, 2019 11:37 am
DaftInvestor wrote:
Fri Oct 04, 2019 11:28 am
You made mention of a "check". Do they have online payment options? With my mortgage I found the online payment allowed me to designate transfers exactly how I wanted them allocated without error (possible your company doesn't allow this). When you mail in a check you are relying on a person to decide how to make the allocations for you - online transfers may allow you to choose via a drop-down and be less prone to error.
I pay it through my bank's online banking. I don't mail them a check. According to my bank's website they pay the mortgage company electronically and not via check. Extra principal payments contain "Prepayment" on the memo line as designated in my loan agreement.
I would pay it through the mortgage company's website versus your bank's - especially if they allow you to designate payments to principal via a pulldown. If you are really at wits end why not give it a shot and see if it solves your problem.

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Re: At wits end with mortgage company issues

Post by chw » Sat Oct 05, 2019 7:58 am

setancre wrote:
Fri Oct 04, 2019 11:23 am
Is it possible they didn't properly record a payment over the summer, and are applying everything as if it is one month late now?
This...

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Re: At wits end with mortgage company issues

Post by whodidntante » Sat Oct 05, 2019 7:58 am

Some credit unions hold and service their own notes. My credit union is pretty country though. They called to confirm a prepayment I made recently presumably because it was large. It's fun to make a prepayment there because they send me a new coupon book and those make nice coasters. They don't offer a way to ACH direct debit payments. They can't even accept an electronic payment, according to people they pay to talk to members. So fidelity prints a check to them each month and sends it in the mail.

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