Mortgage fraud?

Originally Posted by clovis

This is outstanding advice, but in my experience, I have found it extremely difficult to find anyone employed at a bank that understands or can explain anything about a loan, especially if it is about prepayment.

I am not kidding when I say this: I have talked to loan originators, as well as branch managers, who cannot explain the basics of paying off a loan early!

I have had two loan originators try to talk me out of paying off the loan altogether, and both of them tried to loan me more money.

I had one branch manager, who has been employed by the bank for decades, try to tell me that it was cheaper to keep the mortgage than it was to pay it off. When I asked her to explain what she meant, she got dead quiet, stuttered for a few minutes, and then said "Well, you can do what you want with your money." She then implied that I was an idiot for trying to be debt free.

When I first was married, we were trying to pay off her car note, which happened to have a higher interest rate than normal. I called a bank to see if they would loan the balance against the car, which I think was about 28 months, and the branch manager tried to talk us into borrowing more money against the car! I think we owed about $6,500 on it, and she tried to get us to borrow $13,000 for 84 months...I know, I know...it is too weird to believe!!!

About 2 years later, we had that car paid off for about two months, and it got totaled. The insurance company was insistent that absolutely no one had a car that new that didn't have some type of lien on it. They could not believe that we owned that car outright, free and clear!!!! I finally told them I would fax a copy of the title to them so they could see for themselves!!!

Originally Posted by Terri

When I give extra money I send in one coupon only. I write the extra amount on the space for extra principle.

Then again, paying the interest twice is not mathematically correct even if he did send in an extra coupon. He needs to call them and TELL them to please apply all of the extra he has sent over the past few months to the principle.

I would think it would be a simple fix.

Originally Posted by jtbrandt

Instead of taking a vacation from paying, they could get pretty close to the result they were going for by making payments of the regular monthly amount applied to principal only each month until their next monthly payment is due.

This wouldn't help much if they had been doing it for several years, but since the mortgage was recent they can pretty much catch up to what they intended to do in the first place.