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Alex J. Esq.
Alex J. Esq., Attorney at Law
Category: Consumer Protection Law
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Experience:  Experienced Licensed Attorney
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Can I be put into real estate collections, if I am not behind,

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Can I be put into real estate collections, if I am not behind, just late in 2 or more payments and being charged for insufficient funds, when check (payment) was on time and my bank did not return it for insufficient funds.
Hello. My name is XXXXX XXXXX I will be happy to answer your question.

I am sorry to hear about this unfortunate situation.

Are you 2 or more payments late on your mortgage payment?
Customer: replied 4 years ago.


Only late. Not behind. I had roof repairs to do after this past winter.

Dear XXXXX,

Thank you for your follow up.

Unfortunately, when you do not send your mortgage payment on time, it is considered delinquent by the mortgage bank, if the payment is not received by the payment due date.

Unfortunately, if you are late and behind about 1 or more monthly payment, not only the bank can transfer your account to collections, but also the mortgage bank can at some point refuse to accept your future payment and demand that you either pay the entire amount that is currently due, plus late fees and penalties or the bank will start foreclosure process in order to foreclose on your house.

So it is extremely important in a situation similar to yours, for the mortgage borrower to make arrangements with the bank to catch up on payments, to avoide further collection activity by the bank and potential risk of foreclosure.

I know this is not an answer your were hoping for, but I do have professional obligation to provide JustAnswer.com customers with correct answers, even if the answer is not favorable to the customer.

I wish you the best of luck!
Customer: replied 4 years ago.

I am currant with payments, 2 were late, due to other payment to correct the roof, that was the only reason for being late, should I have just let the walls and roof fall apart?

Dear XXXXX,

Thank you for your follow up.

I completely sympathize with your situation, but the mortgage bank unfortunately does nor care for the reasons as to why the borrower is behind on the payments.

Basically, you would want to make sure that you either send the two missed payments to the bank asap or make repayment arrangement with the bank, so you can catch up and avoide further collection activity by your mortgage bank.

I wish you the best of luck!
Customer: replied 4 years ago.

No, the payments are currant, they were late only. I am up to date with my mortgage, no missed payments, they were late only. first month late, they have payment and second month late, they have payment also, this month is in mail. payments are due on first of month, I was told I had 30 days before being late. I know the last 2 were late, but I am not behind on the mortgage, I mean, I do not owe any month, all is up to date. ?

Dear XXXXX,

Thank you for that clarification.

Are there any late fees or some other penalties that the bank is claiming owed to them?
Customer: replied 4 years ago.


$25.00 insufficient funds, but my bank did not return the payment for that reason, but I sent that $25.00 in this last payment. When my mortgage was transferred, the notice said, I had 2 months, with no late fees or any fees relating to that. They are charging me $25.00 for insufficient funds. The copy of that check I saw in my statement they received it, their bank stamp, shows 8/14/2013, it did not get to my bank until 8/22/2013.The bank discloser statement says I could not be charged, or even reported to the credit bureaus for 2 months being late.

Dear XXXXX,

Thank you for your follow up.

Did you contact your mortgage bank's customer service and inquired as to why your mortgage account, that is now current is in the collection department and requested it to be transferred out of collections?
Customer: replied 4 years ago.


No. I did not think I needed to do that. I figured they would do that by themselves. since I was only late in payments and late fees were included in the payments, the last payment was sent to the main (first mortgage bank), since I had their payment coupon and did not have the collections bank payment coupon, I only new what the new payment amount was, from calling the New Banks customer service line, late I called again to check if payment was received When I got the new statement, they were asking for the last payment and also the new payment and the insufficient fund payment, for a total of $3,300 plus dollars, when they had that last payment, and that payment was in their hands on the 8/14/2013 one day before being late (incurring) a late fee. The first late payment had been made to the original bank (not the collections bank)

Dear XXXXX,

Thank you for your follow up.

It would be a good idea to contact the mortgage bank's customer service and to make sure that they update their records to reflect that your mortgage account is up to date and that should stop any collection activity.

You would be able to explain your situation and financial hardship to the mortgage bank's customer service and the fact that all of the mortgage payments have been brought current and there is no amount on the account that is currently delinquent or past due and hopefully that should resolve this unfortunate issue.

I wish you the best of luck!
Customer: replied 4 years ago.


I understand that. Will that take me out of the collections bank? They said that the collections bank, and I only know that this is a collections bank from the phone calls, that this bank was servicing my account, so I am under the impression, that they sold the loan to this bank, but as I call them, it states in the recording first, that this is an attempt to collect a debt. Do you think by calling the original bank of America and explaining all of this, that they will put me, us back in the normal payment status. Is this the right thing that I should do, will it do any good? I don't understand why I was put into collections, just for being late. I know it was 2 months, but I was just late, not behind any month.

Dear XXXXX,

Thank you for your follow up.

Unfortunately, the mortgage bank does have the legal right to sell a mortgage debt to another bank or hire a servicing company to service any of the bank's mortgage account without consent from the borrower, as such legal right to sell, transfer or assign a mortgage account is generally contained in most mortgage agreements.

However, if your account has been transferred to a mortgage servicer simply because you were late, it might be possible for you to request to get your account transferred back to BOA.

I wish you the best of luck!
Customer: replied 4 years ago.


Okay. Thank you. You say contact BOA and explain to them the situation, payments are current and see what happens or they can do it at their leisure or do you think that the servicing bank, will send it back to them, when they see that the payments are being paid as normal on a regular on time payments?

Dear XXXXX,

Thank you for your follow up.

It would be up to the BOA discretion whether to transfer the account back from the servicer, however if doesn't cost anything for you to contact BOA and place such request and hopefully it will be granted.

I wish you the best of luck!
Customer: replied 4 years ago.


Okay then. Thank you very much Alex, for your help. Joe

I wish you the best of luck.

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