Posted on: 21st Aug, 2008 01:47 am
I live in Houston, TX and I was just inform by my mortgage company that the additional money I've sent with my monthly payment was not being added to my principle; it's neing credited as payment. Each payment I've sent in stated payment + principle. The house is a Deed and Trust loan. Can the mortgage company not apply the additional funds to principle if requested?
Hello.
Have you made any agreement with the mortgage company that you aregoing to make extra poayment on the princile? If not then why have you made the extra payment with any agreement?
Have you made any agreement with the mortgage company that you aregoing to make extra poayment on the princile? If not then why have you made the extra payment with any agreement?
No I did not make any arrangements with them. I'm trying to pay it off sooner. Should I have make arrangements? I thought you can just send in extra and inform them on how to apply it.
Yes. You should have made a agreement with the bank. Without agreement why would you make any extra payment?
Hi tanyel_mitchell,
I feel there should have been a written agreement between you and the mortgage company. But this shouldn't be the reason why the company isn't adding the extra payments. Had there been a written agreement, you could have at least asked them for an explanation.
Thanks,
Jerry.
I feel there should have been a written agreement between you and the mortgage company. But this shouldn't be the reason why the company isn't adding the extra payments. Had there been a written agreement, you could have at least asked them for an explanation.
Thanks,
Jerry.
I Made extra payments to my Mortgage too and discovered that is was not going to my principle. I discovered that I have to send them a letter explaining that I want my extra payments going to the principle. The Mortgage company explained that would fix the issue.
keith, that's the way it ought to work.
tanyel, i don't understand how they say that the excess was applied as "payment." you ought to request a recap of your account, to see precisely where these funds were distributed. if they were allocated to interest, escrow, etc. you have something to raise a fuss about. inasmuch as you strictly stated that it was to be applied to your principal they should have complied with that request.
there's no need for an "agreement" with this lender. that's just foolishness. the lender should have enought sense to know how to allocate funds, especially when a borrower makes a specific request.
fight them tanyel - you are in the right.
tanyel, i don't understand how they say that the excess was applied as "payment." you ought to request a recap of your account, to see precisely where these funds were distributed. if they were allocated to interest, escrow, etc. you have something to raise a fuss about. inasmuch as you strictly stated that it was to be applied to your principal they should have complied with that request.
there's no need for an "agreement" with this lender. that's just foolishness. the lender should have enought sense to know how to allocate funds, especially when a borrower makes a specific request.
fight them tanyel - you are in the right.
