Posted on: 16th Sep, 2008 08:50 am
I have a mortgage thru Countrywide. It is due on the 16th of every month. I made a payment last month on the 15th at a local branch office of Countrywide mortgage in my town(Fresno, CA). (15th fell on a Friday, payment finally got to processing center on 19th)
When I received my next monthly statement, Countrywide charged me a late fee. As far as I can tell, and what the clerk told me, that because the payment did not reach the processing facility until the 19th of the month, I was late on my mortgage!
It is my understanding that the day I make a payment to a branch office of the lender is when the payment should be posted, in this case, should have been posted to my acct on the 15th. Is this correct? I am not a lawyer, I have tried to find the part of the law that says this, but have not yet been successful.
Please let me know.
I thank you for your answer.
Don Barela
Fresno, CA
When I received my next monthly statement, Countrywide charged me a late fee. As far as I can tell, and what the clerk told me, that because the payment did not reach the processing facility until the 19th of the month, I was late on my mortgage!
It is my understanding that the day I make a payment to a branch office of the lender is when the payment should be posted, in this case, should have been posted to my acct on the 15th. Is this correct? I am not a lawyer, I have tried to find the part of the law that says this, but have not yet been successful.
Please let me know.
I thank you for your answer.
Don Barela
Fresno, CA
don, i have a strong suspicion that the actual due date on your loan is the first of every month, which would be typical in this industry. paying on the 15th day of each month allows you to avoid a late charge if that's the case.
most, if not all, lenders stipulate that receipt of payment after a particular time of day will be received as of the next business day. in your example, payment on the 15th after that particular time (say 2 pm) meant that the next business day would have made you late (assuming a 1st due date).
in the terms of your mortgage note, you are actually late on any day past the due date; so if your payment is due on the first, you're late on the second. lenders typically grant a grace period for the late charge, such as 15 days, but you're still late. penalized? no; late? yes.
that appears to be the system under which you are operating in this case...and keep in mind that the time of day that receipt is required could be eastern time zone - 2 pm in your area is 5 pm on the east coast.
most, if not all, lenders stipulate that receipt of payment after a particular time of day will be received as of the next business day. in your example, payment on the 15th after that particular time (say 2 pm) meant that the next business day would have made you late (assuming a 1st due date).
in the terms of your mortgage note, you are actually late on any day past the due date; so if your payment is due on the first, you're late on the second. lenders typically grant a grace period for the late charge, such as 15 days, but you're still late. penalized? no; late? yes.
that appears to be the system under which you are operating in this case...and keep in mind that the time of day that receipt is required could be eastern time zone - 2 pm in your area is 5 pm on the east coast.
i don't think there is much you can do to hold them to the date that you made the payment. however most most mortgage companies will post your payment when they recieve it, not when they process it. it is a shame that they did this to you just to get a late payment on your account. most other companies would not do this. i really don't have anything good to say about countrywide. a lot of people that are with them refinance when they have a chance. if it were me, i would refinance at the first opportunity. thats just my personal advice since i have heard many horror stories about them over the years.
