Re: crazy mortgage company - how can they do this?

Posted by mk_378 (164.106.129.130) on July 25, 2004 at 16:55:45:

In Reply to: crazy mortgage company - how can they do this? posted by FLgal on July 25, 2004 at 02:25:25:

Follow Keyser's advice and report them. They are breaking the law left and right. You really need to nip this in the bud because they are obviously setting up to take your house.

It is specifically illegal to cascade late fees like they did. You owe one for May because it probably really was late. But they can't say your June payment was really paying for May, thus you're also late for June. In the future, don't get even close to being late with a payment, if possible. If you must cut it close, go ahead and make the payment for the normal amount plus the late fee. Then when they consider it late, they can't reject it. Send all payments by CMRR or in person so you have proof of when they were received.

Depending on your contract and state law, you may be able to write "For Principle and Interest Only" on the check and then they have to accept it and apply it to the loan. They can still charge you a late fee though.

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