What is a Suspense fund?

From what I understand, regarding suspense accounts, that is where they put money until they figure out what to do with it. If there is a partial payment, it goes into suspense until they get enough for a complete payment.

It doesn't sound like you will benefit from making bi-monthly payments if they are putting the funds in suspense, as I doubt it offsets interest owed and it doesn't accrue any interest. Indeed you'd fare just the same by making one full payment at year end or just adding 1/12th of a monthly payment each month.

read up on RESPA and what a qualified written request is.

Hi

As far as I know, a suspense account holds those payments that have not yet been applied to principal, interest or escrow. The payments remain in the account until they are designated properly.

Is it true that if you make one extra mortgage payment a year, your house would be paid off in 1/2 the time. In other words if you have a 30 year mortgage and you made 13 payments a year, your house will be paid off in 15 years.

I don't think making one extra payment every year for 15 years will help you in paying off your 30 year mortgage in half the time.

I did a refi and paid off one mortgage company. I paid all payments due plus one that was paid ahead because of not knowing when closing would be. The amount was 12879.78 they were paid 13432.14 which I received a letter stating amount of principle 12879.78 paid plus $55.50 to satisfy a recording fee and then 496.86 to the suspense account. Leaving a refund of 504.22. Why do they get to charge for recording fees also and how come they do not send me the 496.86 as they were paid off

Hi gramma,

You should contact the lender and ask them to clarify the matter and send you the refund. You can even speak to a real estate attorney in this regard. He will be able to clarify the matter to you.