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Kim Courtney
Kim Courtney,
Category: Legal
Satisfied Customers: 4219
Experience:  Founder/Member at Food Business Association
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Can the bank issue a new note stating their newly calculated

Customer Question

Can the bank issue a new note stating their newly calculated payment going forward for the remaining 25 years?
And what will happen if I refuse to sign that new note?
Submitted: 7 years ago.
Category: Legal
Expert:  Kim Courtney replied 7 years ago.
Hello, I am happy to assist you today.

Can you give me some more information about your situation? It sounds very strange that they want to reissue the note. Generally you wouldn't be required to sign a new one, unless the new one represents the original agreement.

Kim Courtney and 9 other Legal Specialists are ready to help you
Customer: replied 7 years ago.
I have a 30 year mortgage, with a 5 years interest only and 25 years principals and interest. The note states that Quote My monthly payments will be in the amount of US$ 1,490.62 for the first 60 months of this Note, and thereafter will be in the amount of US$1,728.84. Unquote.
Whoever wrote this Note, made a mistake that we recently discovered. US$1,728.84 is the Principal and Interest I should have paid over 30 years. The bank now insist that I pay US$1,844.20 for the remaining 25 years. This actual is the correct amount I should have paid. But the note says I only have to pay US$1,728.84.
Expert:  Kim Courtney replied 7 years ago.
Ok, if there was a clerical error then you would be required to make this change. If you look closely this should even be written in your mortgage documents somewhere.

If you refuse to sign the new note, what will happen is they will go to court and get a court order for the new note to be validated with or without you. So there really isn't a way for you to get out of the new note.

What you can do, on the other hand, is say that you agree to sign the new note, but try to negotiate a bit with the monthly payment. See if they will let it be lower than intended.

Good luck,