Posted on: 09th Jun, 2010 11:07 am
I am in the process of getting a loan modification with Wells Fargo. My unpaid principal balance right now is 286.480.11. I have a past due balance of 14946.48 which includes principal, interest, and escrow. why are they adding this on to my principal balance. it seems that now i am paying my principal twice. my principal balance was not reduced at all while i was past due bc i wasnt making any payments. i already paid down the principal to get to 286480.11 so now it seems like i am going to be paying interest on the past due balance which consisted of interest along with the principal and escrow....im not sure if im asking this question right
to explain the question better.....my original loan was from 2003 for 320000. over the course of the last 7 years i have made payments bringing the principal balance to 286480.11. as we all know, they only reduce your principal balance once they receive a payment from you so its not like they reduce the principal when they send me the bill and since i didnt pay the past few buills they have to readd the principal back on. i didnt borrow any additional money from them. i would think that they would take my unpaid principal balance and apply the new interest rate and reamortize it over the balance of the loan which is about 23 years....am i wrong in assuming this? it just seems that i am paying more of a loan now bc they are pushing my principal back to 300k as if i never paid that principal down already.
i hear you....its the way they make up i guess for losing money on the interest...so they are not trying to help you they always have to to have something to gain. you get a lower interest rate but your principal goes up for no reason....i understand if they reduced principal by an amount and you didnt pay then they have every right to raise it back up but this is BS