Friday, January 15, 2010

Mortgage freak out

What is the statistic? That something like 1/3 of Americans have, or are about to default on their mortgages? I never thought I would join their ranks, for the simple fact that I pay my mortgage on time, every month, without fail. And yet today, I got a letter in the mail saying that my mortgage is now in default.

Here's how it happened. Just after Christmas, we got a letter saying that our mortgage payment, due December 1, had not been received. I checked my online bank statement and saw that our payment had been sent on November 23. I checked our mortgage account, online, and saw that they had credited our account with the payment on November 27, so I figured it was a simple glitch. Jon called the mortgage company the next morning and was told that our payment had been mistakenly misapplied to our escrow, but that it would be fixed and all would be well. The person also said that he saw that we had sent our January payment as well, and that nothing further was due from us until February 1. He erased the late fee from our account and we thought it was over.

Until yesterday. I worked night shift Wednesday and had JUST fallen asleep Thursday morning when the phone rang. It was the mortgage company, collections department, telling me that our payment, due December 1, had not been received. I was wide awake in a second, saying, "Now you wait just a SECOND" and I explained the whole thing all over again. Oh yes, the mortgage person said, he could see that a payment had been received, but had been misapplied to our escrow, and that our January payment had been similarly misapplied. So now we were TWO mortgage payments behind. He also said to hold off on paying the February payment, in case it too would be mistakenly put into our escrow. He said he would fix the problem immediately but that I should call back next week to make sure it had been done.

Naturally, I was upset, and had a hard time getting back to sleep. In the afternoon, Jon called the mortgage company again to find out how this could have happened, and essentially got the run-around, especially when he asked to speak to a supervisor. It was obvious that our call had been routed to India, and they gave us a rigamarole about how the supervisor would just tell us the same thing that we'd been told all along, so what was the point of even talking to one? For all we know, the guy Jon was talking to just handed the phone to whoever was sitting next to him, someone named Rita, who was spectacularly unhelpful and eventually transferred Jon to someone named "Naomi" who was more helpful and said that the guy who originally promised to fix the misapplied payment had failed to get the signature of a director, but that the guy I'd spoken to that morning HAD gotten the correct signature and that all would be well.

Then today I got a letter saying that our mortgage was in default. I know it had been mailed before we spoke to all those people yesterday, who promised to fix the problem, but it was extremely upsetting, nonetheless. It pretty much ruined what would have been a perfectly good day off. I contacted them through email, but haven't heard back yet, and also sent a paper letter via snail mail, explaining the whole problem and asking for written documentation from the mortgage company that this whole thing was THEIR error.

Here are the facts:
1. WE PAID OUR MORTGAGE IN FULL AND ON TIME.
2. THEY misapplied the money and yet now it is OUR credit rating and OUR house that is at stake and the burden of fixing the whole things lies on us.

I am SO upset. Which is why I wrote this all out, in an attempt to release my frustration. I don't know what to do next. Call a lawyer? Has anyone ever had this happen to them?

7 comments:

  1. hi Aileen - who is your mortgage company? The Secular Lifeguide can point u in the right direction for proper agitating if he knows the name of the mtg company.

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  2. Hope it gets worked out. We had a similar problem but with our homeowner's insurance when we switched it to "landlord insurance". Both the mtg company and the insurance company screwed it up, but I had to spend hours on the phone fixing it, TWICE. It did all get straightened out, more or less.

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  3. That's effed up. Unfortunately, I have nothing else to offer but that sympathetic comment. Hope it is all straightened out expeditiously. In the meantime, how aggravating!

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  4. My heart would have been clogging my throat leaving me hyperventilating or passed out!! call my mom, she is a lawyer and was in banking and she'll give the details on how to proceed. I can email you her cell #. The Mahogany phone was disconnected since she is on the Cape-sarah

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  5. I keep hearing about this happening to people. Who is your banker? I'm so thankful we know ours and I can just walk in his office any old time with any old question--which I did once when my insurance went up because of my "credit rating." Banker promptly looked into it and contacted insurance asking WTF??? I'd be WILD! You poor thing. I hope this gets cleared up quickly because who needs this stress and headache?

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  6. Lame! Knock some heads! Good luck!

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  7. I know how that could’ve been very frustrating for you because you were always responsible when it comes to paying your mortgage, then they get a “glitch” and everything goes wrong for you. I hope that everything is settled already and that they wouldn’t make the same mistake again. That would’ve been troublesome if you figured it out later.

    Armandina Skerl

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