Should I not pay my mortgage?

6 Replies

I am refinancing my house and the close of escrow date is set for Monday the 18th. Was originally supposed to be the 14th so I didn't pay my mortgage payment because of the 15 day grace period. Now that it's closing on Monday, I am getting conflicting advice.

The Closing statement (HUD) shows the payoff from my current lender good through Monday, the 18th. I have never refinanced and I have seen a lot of various opinions online, but not a for sure answer. If I don't pay tomorrow, I get late fees added but I am already getting $200 back on refinance so essentially I get dinged $50. My lender said it won't be reported to credit report since it's not 30 days late and they will be paid in full on Monday.

Has anyone been in a similar situation? What would you do?

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My lender just advised me to not pay because of a similar reason. I advised him to get a new payoff statement :)  The last thing I want is some random person having even a possibility of messing up my credit or charging extra fees!

@John Hyatt your settlement statement should reflect payoff as of the closing date. You stated in your original post that the payoff IS as of Monday the 18th, so I do not see a problem. It will be paid in full on Monday. Most likely if there is a late fee, they will just credit it back. Trying to collect a late fee on a $0 balance mortgage is probably something the lender will consider a waste of their time. You should get on the phone with them a few days after closing to make sure your account shows $0 balance in good standing. If there is a late fee tell them to credit it back because the account is paid in full. The payoff amount came from them, so I would just tell them any fees are not your fault. Worst case, and I doubt it will happen, you are stuck paying $50, but it is not going to show up on your credit report.