QUESTION
Can mortgage service provider use the money I paid under late payment fees?
Asked on Jan 02nd, 2014 on Foreclosures - California
More details to this question:
I became behind on payments in the beginning of 2013. I gave the mortgage service provider 3 payments to come current. That's what they told me to pay. One of the payments for a month's mortgage was put towards fees and late payments. So when I thought I was current I was really a month behind again. I have a Home Affordable Modification Program already. Can they put my money where they want under Hamp mod?
1 ANSWER
The HAMP program doesn't have anything to do with what the lender can use your payments for. That is entirely controlled by the terms of the promissory note and deed of trust. Generally, these contracts provide that payments will first be applied to outstanding late fees and then to regular payments. Don't ever believe what an employee of your lender tells you unless they put it in writing.
Answered on Jan 07th, 2014 at 1:35 PM