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Post by gifted on May 23, 2008 14:31:51 GMT -5
Grrrr.
Just got off the phone with my mortage company. I have been working hard to paydown a balloon mortgage that comes due in 2010. I just looked at my statement, and one of my excess princciple payments was used to pay my loan ahead.
The clerk I talked to kept saying that they could only reverse the most recent mothly payments. I told her that I wanted the work order to request the transactions posted as I had intended. Then she said that it is more work to do what I asked. I said if it was their mistake, they should fix it. (Besides, I think they fixed it properly before.)
She said it would not make much difference, I pointed out that it is two months of interest on $700! It makes some difference to me!
I am finding this discouraging. Why make extra payments, if they won't be applied properly? (A while ago, this company was not applying my payments to my account AT ALL, and I was making double payments just to make sure they didn't post my account as missing a payment!
I am so tired of dealing with this company, but my bad credit means that I can't refinance. I have not been able to face my credit mess. I know that I don't owe too much, just some small accounts, say under $200 each, but I am so angry at myself for letting this situation occur.
Anyway, I did what I needed to do for this mortgage today.
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Post by ramatama on May 23, 2008 14:37:41 GMT -5
oh how aggravating for you! very many people are reluctant to admit their mistakes. ( YT included!) but in this case, it is not like it is her own personal money! Good to hear you standing up for yourself !! - hopefully the entire conversation was polite, shall assume so. here is a smily made for you :  Nevertheless, something like this would throw me off. Kudos to you! |
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Post by gifted on May 23, 2008 15:04:07 GMT -5
Ramatama,
Thanks for the smiley! I feel so honored that you thought I was worth the trouble. It is making me laugh! (Of course my head won't explode, I only feel like it will!)
Well, it isn't her mistake either... I pay through my bank's free checkpaying system. So I am not able to return the payment stub. I do not use the mortgage company's website, or autodraft, because they charge for all of these services. I do not like that they want to charge me to pay them.
It seems that when they receive a payment large enough to cover a payment, they use that money to make a payment. I am sometimes tempted to break up my extra principal payments for example, make 10 separate payments of $50, instead of one payment, but that would make more of a headache for me to keep track of. I doubt that anyone reads the memo section on the check, where I put the note. (If a person even handles the mail, maybe it is all done by machine now.
I was polite, though my voice did get a little firmer and louder. And I kept saying the same thing. The request goes off to another department anyway. I just wanted to make sure she was asking for what I wanted, not for what she thought was appropriate, or easier. (As I have said, I am pretty sure they have fixed problems like this before on my account.)
I guess it is a good sign that I am dealing with some of this harder stuff, and not leaving it pile up any more than it is already. Usually I don't even open these statements.
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Post by angelinahedgehog on May 23, 2008 15:30:22 GMT -5
Is it really a difference, though?
When I was paying student loans, I paid more than the minimum payment. If the excess was less than a second full payment, it went toward principal, and didn't affect the due date of the next payment due. If it was more than a second full payment, it also went to principal (since the interest had been fully paid by the first part of the payment), and it was considered a separate payment, which meant that my next payment due date was moved a month into the future.
SL wants $200/month from AH on the 1st of every month.
AH pays $399 on April 1, SL applies part of the money to pay off the interest that has accrued so far, and the rest (including the extra $199) to principal, next due date is May 1
AH pays $400 on May 1, SL applies part of the money to pay off the interest that has accrued so far, and the rest (including the extra $200) to principal, SL considers the extra $200 a separate payment, next due date is July 1
AH pays $500 on June 1, SL applies part of the money to pay off the interest that has accrued so far, and the rest (including the extra $300) to principal, SL considers the extra $300 a separate payment, next due date is August 1
As long as I kept paying on the regular schedule, it didn't really matter that they were saying I was X months ahead in payments. Everything extra was being applied to the principal anyway, and the payment due date was just a quirk in the system.
So, if they're applying your payments to your account, whether they count the extra as payments toward principal or separate payments may not really matter.
If it's a regular amortized loan (one where there are no penalties for prepayment, and you need to pay only the interest that's accrued), then if they apply the money immediately, the net effect will be the same.
Now, if they hold onto the money until the next payment date and then apply it, that's a different matter. Is that what they are doing?
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