Mortgage company won’t accept my weekly payments, but I have no prepayment clause. Is this legal?
Thursday, April 3rd, 2008artofficialfaux asked:
My mortgage is a traditional 30-year fixed, with no prepayment clause, and was just sold to another mortgage company (the one in question). I recently setup my personal bank account to autopay (EFT) 1/3 of my mortgage bill every week. I did this to reduce accruing interest, and pay a little extra to principle each month. My mortgage company called and said they will not apply my partial payments - they put the funds into a ‘Suspense’ account until the value of partial payments reaches the monthly statement amount.
My mortgage is a traditional 30-year fixed, with no prepayment clause, and was just sold to another mortgage company (the one in question). I recently setup my personal bank account to autopay (EFT) 1/3 of my mortgage bill every week. I did this to reduce accruing interest, and pay a little extra to principle each month. My mortgage company called and said they will not apply my partial payments - they put the funds into a ‘Suspense’ account until the value of partial payments reaches the monthly statement amount.
BUT (here’s the kicker), if I sign up for the mortgage company’s own accelerated pay schedule they will let me make bi-weekly payments.
I thought that if one has a loan, the lessor has to accept and APPLY funds they receive (unless there is a prepay clause). Are they allowed to hold my funds like this and not apply them to the balance? Does this fall under some usury law?
Any mortgage brokers out there? Help!!!
Thanks in advance!
Question posted courtesy of: Glen
