Reinstating a mortgage after forclosure has begun

2 Replies

Okay here goes. My house went was nine payments behind a total of $15003.81. I came up with the money that I needed to bring my account current and called the mortgage company to get right with them. I was told that my house was already in foreclosure and they would have to order a reinstate quote in order for me to get my house out of foreclosure. The quote came back as follows:

Past Due Payments: $15003.81

Total Late Charges: $105.82

Corporate advance Balance $132.00

Attorney Fees and costs: $799.44

Total amount due: $16041.07

I told them that I thought this was incorrect because as they were still sending me statements every month telling me what I owed every statement had an unapplied partial payment balance of $832.48 that they were not taking into consideration. At any rate I payed the amount asked and got my house out of foreclosure thank God, but the next month I get my statement and and it says that I now have an unapplied balance of $984.35 a corporate advance payment of $132 and my payment for that month is $814.74 instead of $1667.09. I figure great they figured it out and are now adjusting it. I sent in a payment for $825.00 and thought all was well in the universe until I get a phone call from my mortgage company. The person calling was unaware of the statement that had been sent out but upon investigation on his part he found it and told me that it had been sent out in error and I still owed the remainder of the $1667.09  or $842.09. I believe I was understandably upset by this and asked for an explanation. His explanation was that the attorney fees had not been paid so that was the reason why the statement went out erroneously. I have added up these numbers about a 100 different ways and if you add in some late fees that they did not include in the reinstate quote it still does not add up to $1667.09 from my calculations the most my payment should have been was around $1305.00. My question is once they give me a quote can they add fees to it and if an unapplied partial payment balance is in an account and not mentioned in the reinstate quote can they take that money for whatever they want. I look forward to your responses.

Take a spin through your mortgage. Unfortunately, I suspect you will find that the lender can do pretty much whatever it wants. You may need legal advice. Good luck.

Can they add in additional fees that were not in your statement, but are legitimate...yes.  An unapplied payment  can be credited toward unpaid fees, yes.  It's not really a matter of "how they want" or "how you want".  Borrowers are always surprised by the amount of additional fees for reinstatement, which will include court filing fees, attorney fees, summons service fees, preservation/inspection fees, etc.

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