Author Topic: Bank WILL NOT apply my payments to my loan - help!  (Read 2124 times)

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nunya

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Bank WILL NOT apply my payments to my loan - help!
« on: March 27, 2012 12:02:25 AM »
DBers have helped me out before, please give me good suggestions on how to deal with a bank that may be overreaching.

I received an email from a loan officer from my bank today.  Stating they'd sent me a certified letter which was returned to them.  Also stating they were holding my last two payments in an escrow account and not applying them to my mortgage.

Backstory: My taxes were late (delinquent in legaleze).  They have since been paid.  My mortgage was paid monthly.  But the bank still has, apparently started foreclosure proceedings.

Today's email also stated that as I was in "foreclosure redemption" I needed to pay their atty fees before they would release these payments that I've made all year from the escrow and apply them to the loan.  And if I wanted to "avoid foreclosure" I should contact them to pay immediately.

This feels like DIRTY POOL.


I responded by informing them that the taxes have been paid and so have monthly mortgage payments.  As there should be no reason for foreclosure, or foreclosure redemption, there should not be any hindrance to me paying my loan.



They respond with an amount that they deem attorney fees, and state that because I paid my back taxes this year, instead of prior to December 31 that they started foreclosure proceedings.  They also listed a multitude of stipulations and that I would have to sign a stipulation agreement essentially giving them the right to reinstate foreclosure at any point, whether it's a day late on my mtg or taxes or whathaveyou.

THIS FEELS LIKE DIRTY POOL.


Can they really do this?  And if no, how can I prove it? 

I will be talking to an atty tomorrow, but I want to know whatever I can going in, as an atty could make this even MORE expensive for me.  But I seriously feel like the bank is overreaching.  If we went to court TODAY, they would not be awarded a foreclosure, so why am I being treated like it's already happened?

Thanks!

Nunya

CleaningUp

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Re: Bank WILL NOT apply my payments to my loan - help!
« Reply #1 on: March 27, 2012 01:15:43 AM »
Before you scream "dirty pool", read your mortgage document VERY, VERY carefully. Keeping up on your taxes is a condition of your mortgage unless you there is a tax escrow clause in the document.

Bet your signature is on a the mortgage that says they can take the actions that they are.


deepkimchee

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Re: Bank WILL NOT apply my payments to my loan - help!
« Reply #2 on: March 27, 2012 03:23:38 AM »
Bet they can't find the contract with the signature. ;)
I refuse to let a piece of paper intimidate me

My statements are educated/non-educated guesses, not legal advice

Fighting Irish

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Re: Bank WILL NOT apply my payments to my loan - help!
« Reply #3 on: March 27, 2012 03:25:53 AM »
I would be willing to bet no small amount of money that deepkimchee is correct.

That might be your first step.

Send them a politely worded letter, asking for a copy of the original mortgage document, with your signature on it, that allows them to start foreclosure proceedings if your property taxes are delinquent.
Dang it, Jim! I'm a nurse, not an attorney!

(The rest of you, keep that in mind, too.)

CleaningUp

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Re: Bank WILL NOT apply my payments to my loan - help!
« Reply #4 on: March 27, 2012 04:01:52 PM »
Depends upon the bank.

nunya

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Re: Bank WILL NOT apply my payments to my loan - help!
« Reply #5 on: March 28, 2012 05:50:09 PM »
Which is fine. But as everything has been paid, can they still take these actions?