How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Real Estate Law
Satisfied Customers: 110492
Experience:  Licensed attorney practicing landlord-tenant, land use and other real estate law and litigation.
Type Your Real Estate Law Question Here...
Law Educator, Esq. is online now
A new question is answered every 9 seconds

I did a loan with a Mortgage Company. My 1st payment was not

Customer Question

I did a loan with a Mortgage Company. My 1st payment was not due until Sept 1st. I made a payment on 8/12/14 I made a payment they cashed it on 8/22/14 but did not apply it until 10/6/14 made another payment on 9/5/14 this was not cashed until 10/3/14. I contacted my Mortgage Broker and, said I wanted to be ahead and was told by email that I did not have a payment due until 12/1/14. My loan was transferred to another Servicer and, a few months later it was transferred back to the originator. All my payments reflected that I was a month a head example 11/1/15 statement next due date was 1/1/16 but, on my 1/1/16 statement it stated my next due date was 2/1/16. They never contacted me to state they were doing anything to my account. I really did not catch that ( so I forgot that I was a month ahead but, in April I made 2 payments successfully on 4/8/16 it was for the next month and then on 4/22/16 made my (as I incorrectly thought for 6/1/16 actually should of been for 7/1/16. They did not apply correctly on 4/22/16 I contacted them to ask them to look into my account they said they would contact me within 5 days. that never happened. It was transferred servicers again. I don't know what my rights are and, I did contact the AZDFI and, they are looking into it but, now I just got a letter from Homebridge and, they state they are in receipt of my letter and, will get back to me within 30 days. I did not re-send any letters
Submitted: 2 months ago.
Category: Real Estate Law
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
Legally, on a mortgage, all payments made in excess of the monthly payment are supposed to go to principal OR applied to future monthly payments. Most mortgage servicers or companies apply excess payments to principal. So if you made advance payments on your mortgage, they are supposed to apply them by your principal. You need to contact them to determine where those payments were applied and if they were applied to principal then they are in compliance with the rules, if not you need to determine what they did with those payments.
Customer: replied 2 months ago.
They held my first two payments for over a month and did not apply the payments. The extra month ahead that I was at just went away after it transferred back to home bridge. I did not notice this until April when I went to get my payments ahead they don't apply my payments they held it and then transferred it and, now I don't know what my recourse is. However, I do not think I am explaining this well and, I don't think this forum will help me with my situation
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your reply.
You need to contact the mortgage company, because those payments CANNOT disappear. The payments have to be applied to either future monthly payments OR they have to apply them to principal and even a local attorney cannot help until you contact the mortgage company and find out what happened to those payments and provide them proof of your payment records and demand they provide an itemized accounting of those records.
Customer: replied 2 months ago.
Home Bridge stated that they were going to sell the loan so they just put my payments in a folder and did not apply the payments the first time it sold to Cenlar that is when my August/Sept payments were applied to my account. I was a month ahead until it Transferred back to Home Bridge that is when the extra month just went away. I did not realize this until July when in April I made 2 payments and they were for months ahead. They did not apply it correctly so in April I made 2 principal payments 2 escrow payments 2 interest payments and, this would of been for my "may" I have asked them for a detailed account history they ignored it. That is why I have gone to the Arizona Department of Finance who is over this bank. So I guess I just have to wait to get the AZDFI report
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your reply.
It does not matter whether they sold it or not, they have to apply the payments prior to the transfer or send the payments to the new company. IF they failed to do so then you can sue them for breach of contract.
Customer: replied 2 months ago.
Ok well thanks. What type of Attorney would I need for this endeavor?
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your reply.
Once you get the information, you would need a consumer protection law attorney to pursue any case.
Customer: replied 2 months ago.
Thank you so much.I will wait for the AZDFI to give me the report. However, I do have proof that on 8/22/14 they cashed the check and it was not applied until 10/6/14. I have an email from Home Bridge dated 10/6/14 that stated I did not have a payment due until 12/1/14 but, shows they did not apply my payments. They held it to sent to the new servicer. Then my extra payment disappeared and, I had emailed them asking them what was happened to my account. They stated they would send it to payment processing this was on 4/22/16 (when I knew there was a problem but it took me a while to figure it out) they stated it would take 5 days for them to contact me back. They did not. But I did not know who I would need to seek for help. AZDFI just stated they could not help in breech of contract. I know think I understand what they are stating I need to do.
Thanks much
Expert:  Law Educator, Esq. replied 2 months ago.
Thank you for your reply.
As I said above, if the payments are not applied, then that is what you sue for, breach of contract. However, you need the itemized account statements together with your payment records to reconcile the two and that is how you prove your case.

Related Real Estate Law Questions