? about how mortgage is reporting

[margie1968]

I'm not sure if this is the correct forum for my question so I apologize if I've got the wrong one.

My mortgage payment is due on the 5th of every month. If I send it to them on the 6th, or the 10th or the 25th (any day after my due date but still within the month), they send the check back to me and refuse to accept my payment UNTIL I make next months payment. For instance if I drop off a check to them on Jan 6 for my Jan mortgage payment, they will return it and tell me they won't accept it until I make my February payment, therefore, I have to wait and pay my Jan. pmt to them with the Feb. pmt. Can they do that??? Why would you not take someone's money? I know they sometimes do that if it's over 30 days but it never has been.

Also they report each payment as 30 days late when it's not even been 30 days and wouldn't even be late at all if they would just accept the payments. I know it's my fault for being even 1 day late but it seems kind of unfair to report someone as 30 days late when it's only been 1-5 days.

Also, if you have a lot of late mortgage payments on your credit report, which I know stay there for 7 years, how long does it take to improve your rating or score as long as you have no more late payments? I guess I'm just wondering how long those late payments will affect me. 7 years? Forever? Thanks.

[kevin3344]

What does your contract say? Do you have a grace period? It sounds like you are dealing with a local company since you "drop off the check". I would love to do that but my mortgage servicer is out of state.

Best advice I can give is to have them take it electronically out of your account. It just seems weird that they can't accept your payment after 5 days.

________

Brunette Cams

Edited September 9, 2011 by kevin3344

[divemedic]

There is a law that states payments MUST be posted the day they are paid. I think Methuss is the one familiar with it. Check with him.

[June]

Best advice I can give is to have them take it electronically out of your account. It just seems weird that they can't accept your payment after 5 days.

It appears that this company cannot be trusted. I would not authorize them to take automatic deductions from my personal checking account. I would have to find another way to pay them directly.

The Clerks at my local natural gas company pulled a similar stunt like this. The Clerks routinely posted payments late and even claimed they NEVER received one payment which was included with a Dispute Letter sent via CMRRR.

Before paying the outrageous $32 Stop Payment Fee, I telephoned the Clerks and explained that there must be a thief in their office because my check was included with my Dispute Letter which was signed for and received by James Doe on May xx, XXXX. While holding on, my check magically appeared on her desk. (hiccups!)

To this day, their Clerks still cannot be trusted. So, every month I pay the company by USPS Postal Money Orders until I feel comfortable with paying from my personal checking account again.

BTW I had complained to their president, VP and Resident Agent and the Dept. of Financial Services (DFS) because of their violations of the Florida Consumer Collection Practices Act (FCCPA) and their company policy.

*Not offering any advice, just sharing my experience. Thank you.

[Luciano]

As we read on a previous response the answer to their obligation to receive the payment is contained in the note that you signed that should indicate a grace period as well as what the fine should be after that period expires.

As far as the continuous reporting of 30 days late, in the lending trade, that's called rolling lates, and the good news is that for purposes of qualification for a new mortgage they are grouped, in groups of 2, 3, or more and counted just as a 1 late.

If you payment is due on the 5th. and you try to pay on the 6th and they refuse to accept, then they are in fact forcing the deliquency into the 30+ day zone, and that is ilegal.

Is this a private mortgage that a local investor is holding?

If not, then the lending institution is regulated by a state agency, and also by HUD and possibly FHA.

Obviously I am not giving you any legal advise as I am not qualified or licensed to do so, but in my humble personal experience I would suggest that you consider refinance out of that lender ASAP.

Good Luck!

[Nants]

I would like to agree that you should have to check the contract and study it. That should not be. There are so many instructions and exemptions on the mortgage schedule of payments. How about if the 5th day falls on weekdays and no banking transactions are made? Should you pay it before or is it still allowable to make your payments after?

You should have to find the reasons on their office for that? Do they have different accounting procedures? Are they strict on the implementation o your payment?

These are only few considerations. If you`ll have to find out then ask a certain CPA`s or knowledgeable individual for your perusal. This is a serious problem and need a serious findings.

Hope I contributed a sort of knowhow on your part.