New mortgage company raised my payment amount!?!

Crystal River, FL · Member since 2017 · 68 posts · 56 votes

Hi all, recently several of my mortgages were purchased by Freedom Mortgage. I realized today that somehow the payment amount on at least one of them was increased by about $50, creating a late payment fee. I'm in the proceas of discovering why right now and was wondering if anyone has ever encountered this problem. I'm considering refinancing all the loans to get away from this company based in some terrible reviews.

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Brie SchmidtBusiness Member

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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes

Originally posted by @Wayne Bodley:

If they bought the loan it would be the same principle and interest amount. They probably predicted an escrow shortage and increased your payment to cover that. You should have been notified of the escrow increase

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Brie SchmidtBusiness Member
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Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
8y
Originally posted by @Wayne Bodley:
Hi all, recently several of my mortgages were purchased by Freedom Mortgage. I realized today that somehow the payment amount on at least one of them was increased by about $50, creating a late payment fee. I'm in the proceas of discovering why right now and was wondering if anyone has ever encountered this problem. I'm considering refinancing all the loans to get away from this company based in some terrible reviews.
If they bought the loan it would be the same principle and interest amount. They probably predicted an escrow shortage and increased your payment to cover that. You should have been notified of the escrow increase
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Bob Okenwa
Real Estate Agent/Investor · Peoria, AZ · Member since 2016 · 2k+ posts · 2k+ votes
8y
What exactly was increased? The mortgage amount itself cannot increase unless you have an ARM, but I'm guessing they adjusted their escrow estimates and increased for property taxes. Best to call them immediately and get an explanation.
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Cara Lonsdale
Realtor and Investor · Scottsdale, AZ · Member since 2017 · 1k+ posts · 1k+ votes
8y
As already mentioned, if you were up for escrow review, your taxes and insurance payments may have been adjusted to accommodate a shortage. Look over your statement to see what the breakdown of your payment is compared to your previous payment. The difference should be in the escrow portion of your payment.
Another thing to check..... if the new lender doesn't have a copy of your homeowner's insurance, they may have purchased a new policy on your behalf (Lenders can do this as their loan docs stipulate that homeowner's insurance is required, and the lack thereof would trigger a mandatory purchase by the lender). So, I would double check with the new lender that they have a copy of your homeowner's policy. They will most likely request that you have your insurance agent change the lender on the policy to reflect the new lender.
If, after checking your escrow account, and your homeowner's policy, it isn't either of those items, I would refer to your loan docs that you signed detailing your payment (your note) and contact the lender to discuss.
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Wayne Bodley
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Crystal River, FL · Member since 2017 · 68 posts · 56 votes
8y
Great advice everyone, I'll dig a little deeper, the escrow or insurance situation is probably the answer
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Steve Babiak
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
8y
When the mortgage company changes, they will usually tell you to change the mortgagee statement on the property insurance, so be sure that you have the mortgagee corrected.
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