I Am Upset with My Mortgage Company
By Marsha
@MarshaMusselman (38865)
Midland, Michigan
December 16, 2016 9:25am CST
Two months ago I got a statement from my mortgage company that they were raising my monthly payment from 649.00 per month to 880.00. Yikes! I took a look at the reasoning for this and found that they based it on what they thought my yearly property taxes are. They projected the same amount for the winter taxes as the summer taxes.
In our city, the two amounts are quite a bit different. For this year's summer amount it was fourteen hundred, and the one recently paid was only 399.00. I called them and explained their error. They still wanted me to pay the eight hundred, which I refused to do. For one thing I don't have that extra money laying around or in the bank or anything/anywhere, for another I didn't see the purpose when they'd then send me a check for the difference later in the year. I did pay the amount I'd been paying up to then. I didn't not pay anything for that month.
What I didn't realize at that time is that my both my summer and winter tax did go up compared to what it was the year before, but they didn't mention that at all. Even though they've received a copy of my winter tax owed from the treasurer in my city and fixed the amount owed per month they are saying I still owe that larger amount before they'd consider me caught up.
I can see that I might owe 80.88 to account for the difference and two months late charges, but I shouldn't owe almost a whole months worth extra. I paid the 680.00 for this month, but they still want me to pay an additional 700.00 for some reason. I'm thinking the left hand doesn't know what the right hand is doing, and that's on their end. Not talking about my hands.
I got a letter from one of their collection individuals there to work this out. I'm hoping that I won't have to pay the extra two hundred dollars, but if they force me to do that, I'll have to get the money from my sister. I also hope I can get them to understand why I don't think I should have to pay the extra seven hundred either.
This would be one reason to pay my city taxes out of my own pocket, and since I already do that with my homeowners insurance, maybe I should consider doing the same for this. Then at least it wouldn't affect my mortgage payments like this.
Anyone else ever have situations like this come up where you misunderstood what they weren't telling you? If so, did it get resolved to your favor?
9 people like this
12 responses
@epiffanie (11337)
• Australia
23 Dec 16
Yes, increase mortgage repayment is daunting .. My husband and I have finally gotten rid of the mortgage ...
1 person likes this
@epiffanie (11337)
• Australia
29 Dec 16
@MarshaMusselman Our home is fully paid now .. We made sure that we don't have mortgage left to pay before my husband retired late last year ..
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
30 Dec 16
@epiffanie hIt will be a long time before we have ours paid in full, in fact it will be almost a miracle if we're able to get it paid off before either of us die. We refinanced too many times since moving here although at least now we can pay something toward our principle and our payments are lower than they used to be when nothing was going toward the principle.
I am hoping to work another six years before retiring and I plan on getting full social security and still be able to work full-time. THat's allowed here once you reach the age of sixty-six for someone born in the early fifties. It's different now for everyone dependent on when they were born.
I'm hopeful that in that six years I'd be able to pay off all my other debt and a home equity line too. Then we'd be able to pay our mortgage down faster before I retire so it's more managable.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
29 Dec 16
Meaning you paid it in full or you sold your home and are now rending?
1 person likes this
@fishtiger58 (29819)
• Momence, Illinois
16 Dec 16
Wow that is quite an increase for your monthly payment. Who has that kind of money month after month. Have you considered finding a better mortgage company.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
16 Dec 16
I don't mind this mortgage company other than this problem. This is the first time this has happened and will hopefully be the last. I think if I were to try to get a different company to work with they'd want to do an appraisal first to make sure my house is worth what my mortgage amount is. While it should be fine, it would cost to do that. I'd have to ask around.
The actual increase will be only thirty dollars. per month once I get this situation fixed. If they make me pay the two hundred dollars extra, then possibly it would go back down to what I was paying before, but I think they're wanting more of a cushion in case it raises again for the next year.
1 person likes this
@fishtiger58 (29819)
• Momence, Illinois
16 Dec 16
@MarshaMusselman A different mortgage company would make you pay for the appraisal ? If they want your business I would think they would pay for that. I would check into that,.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
16 Dec 16
@fishtiger58 I'm not sure about that as we've not had to get a new company since our last refinance.
1 person likes this
@Carmelanirel2 (8085)
• United States
16 Dec 16
Uh oh, sounds like you are having a similar problem that we are having. We went through a chapter 13 and thought everything was taken care of, including our mortgage. Then we found out all the money they was getting those 5 years was going to our insurance and taxes!!!
This was no escrow account and we have been paying for our own insurance at the same time. Now they want an extremely high amount or they will take our home.
I put mortgage companies up there with lawyers and construction workers. They don't care and all they want is our money without doing their job!!!
This was no escrow account and we have been paying for our own insurance at the same time. Now they want an extremely high amount or they will take our home.
I put mortgage companies up there with lawyers and construction workers. They don't care and all they want is our money without doing their job!!!1 person likes this
@BelleStarr (61463)
• United States
2 Feb 17
I have always paid my home taxes myself and never include them in a mortgage payment. We have two more payments on our cottage in PA and then we are mortgage free all the way around. I will be happy to see the end of it.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
2 Feb 17
Maybe I'll be able to do it that way eventually, but I don't know whether I'd remember right now. Maybe next year when I begin getting social security payments I can pay it upfront when due.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
30 Dec 16
I may have to wait a month or so to see how it gets applied to my balance. I went ahead and paid the difference they wanted for November, but I want that to count toward the escrow or principle and I'm concerned that it won't. I paid my December bill earlier than normal to help them get caught up on their end with the paperwork.
If it doesn't get applied satisfactorily to me, I can send a letter to dispute things, and they are supposed to research things out on their end.
1 person likes this
@moffittjc (128861)
• Gainesville, Florida
17 Dec 16
Interestingly, I've never heard of any place charging winter taxes and summer taxes! Pretty interesting concept, although I do see why they would have a system like that up north. On all the mortgages I've ever had, I've always set up my escrow accounts to collect more money than was actually needed. I would rather overpay than underpay, because it's easier to get that extra amount refunded than it is to try and come up with any shortfalls in the escrow account.
1 person likes this
@moffittjc (128861)
• Gainesville, Florida
21 Dec 16
@MarshaMusselman That is totally understandable. Sometimes financial matters are easier said than done. Medical bill can--and often do--put a damper in people's financial plans. I've heard many stories from people that said they would be out of debt by now if it wasn't for unexpected medical bills. So at least you are not alone in that respect.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
19 Dec 16
That would be the easier way to go, but we don't have any extra funds to be able to do that or we'd already be out of debt. Since my husband's five surgeries that took place eight years ago, we've not had any extra money for much.
1 person likes this
@OreoBrownie (3755)
• Commerce, Georgia
18 Dec 16
When I owned my 4 bedroom house I had homestead taxes and just got taxed once a year.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
19 Dec 16
We have the choice of doing it that way or letting our mortgage company do it for us, in fact that is the way the majority of the people do it here. I used to have my home insurance with my mortgage too, but I've been doing that on my own for the past several years.
Although they've fixed my escrow amount due, they won't change the amounts they said I owed for november and the only way to catch me up is to pay an additional 150.00. I can send a dispute letter and maybe that would go toward something legit, but I'm not sure that I'll bother.
@crazyhorseladycx (39503)
• United States
17 Dec 16
i'd drop the 'middle man' asap. last troubles i'd gotten 'nto was with'n emergency room bill/er doc bill. they charged me fer 'critical' due to the 'mount 'f time they held me there. e'en though i t'was jest sittin' 'n a room fer nearly 4 hours waitin' fer discharge papers. 't didn't go well...
1 person likes this
@Morleyhunt (21741)
• Canada
16 Dec 16
Sounds a lot like and issue I had when I had the store. I was required to collect and submit the provincial salcapital s tax...which I did. There had been a mix up so I had been behind. I thought it was straightened out but when we purchased a home they would. Ot let the sale proceed because I owed big bucks...$2,500.00 or so. After calls to and from the tax department...to and from the lawyers office....to and from the real estate agent...it was sorted out. A quick trip to the bank...a payment of $27 and we were finished. ....everything was paid in full. I still shake my head over how stressful that day became because someone in the tax office was not doing their job.
1 person likes this
@MarshaMusselman (38865)
• Midland, Michigan
16 Dec 16
That's my dilemma too. They based the eight hundred dollar payment on having the summer and winter taxes the same. I think they should retroactively go back and fix their previous amounts including taking off the late charges, since those amounts were incorrect in the first place. But, not sure that they'll be willing to do that.
I should be good with paying the extra thirty dollars for this months mortgage, but it looks like I should have done that amount for last month too although that wasn't spelled out in that manner. I'd be willing to do that amount again, with late charges for Nov and Dec even though I paid what I was before on time and be done with it. I won't know whether things can work out or not until I talk with the the collections individual. I'm hoping I can get through tomorrow morning.
1 person likes this
