Loan discrepancy. I think i overpaid into my property!

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Loan discrepancy. I think i overpaid into my property!

Daryl Allen
Member since 2021 · 13 posts · 3 votes

Ok to start things off .

Im buying my raw land for $30k. Paid $15k upfront to initiate the contract.  Heres where it gets fun.  Its at a 7% amortized interest rate.  Signed on april 2022.  Ive been making monthly payments of $265 at the least.  My required payments were $235.  However for the first 5 months i was able to pay via zelle with no fees.  Then i get asked to switch to terra notes and have been paying through them since sept 2022.  I noticed after about 1 year of app paying they never applied my zelle payments.   So i ask for them to update it so it reflects correctly. They never did.  So i continue to pay via requested app to today still.  Well the other day i noticed still no update,  and the extra i have been paying towards principal has been being taken as a service fee.  So i compiled a list of these service fees and some taps a $60.75 mark.   Well.  All the service fees add up to $1318.76 that wasnt ever applied to my principal.   So that leaves the $1300 from zelle payments and the $1318.76 from fees that should have went to my principal.   Ran it through the usual Google machine and a paid chat gpt and both said i should already be paid off and entitled a refund .   Can a Human please help me?   I am living off of 366 a week of unemployment for the time being so i cant afford a lawyer 

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  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    1y
    Quote from @Daryl Allen:

    Ok to start things off .

    Im buying my raw land for $30k. Paid $15k upfront to initiate the contract.  Heres where it gets fun.  Its at a 7% amortized interest rate.  Signed on april 2022.  Ive been making monthly payments of $265 at the least.  My required payments were $235.  However for the first 5 months i was able to pay via zelle with no fees.  Then i get asked to switch to terra notes and have been paying through them since sept 2022.  I noticed after about 1 year of app paying they never applied my zelle payments.   So i ask for them to update it so it reflects correctly. They never did.  So i continue to pay via requested app to today still.  Well the other day i noticed still no update,  and the extra i have been paying towards principal has been being taken as a service fee.  So i compiled a list of these service fees and some taps a $60.75 mark.   Well.  All the service fees add up to $1318.76 that wasnt ever applied to my principal.   So that leaves the $1300 from zelle payments and the $1318.76 from fees that should have went to my principal.   Ran it through the usual Google machine and a paid chat gpt and both said i should already be paid off and entitled a refund .   Can a Human please help me?   I am living off of 366 a week of unemployment for the time being so i cant afford a lawyer 

    Somewhere there should be some statement on how to make payments and how they are applied. If you don't have this, because of some kind of homemade or gentlemen's agreement, then you will likely need a court to enforce what you say are extra principal and they say are service fees.
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  • Daryl Allen
    OP
    Member since 2021 · 13 posts · 3 votes
    1y

    I just reviewed the payment screen and there is a transaction fee per payment... However im still accounting for that fee.  So my payment reflects that $13.75 fee.  Ive been payin 32+$ above the total on top of the fees.  

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  • Michael Murphy
    Investor · Buffalo · Member since 2025 · 45 posts · 27 votes
    1y

    How much is the loan amount for?  The way it is worded it sounds like you had a $15k loan, which would make it impossible to be paid off with $265 per month from April 2022.

    You might try paying just the required amount for the next payment and see how it is reflected in their system.  If those extra payments you have been making each month are treated as service fees then it would be logical that they would say you were short when you make only the required payment.

    Are you sure you have a clean title to the property?  None of the lenders I deal with ever asked me to make a payment via zelle or whatever terra notes is.  It sounds suspicious to me.

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  • Daryl Allen
    OP
    Member since 2021 · 13 posts · 3 votes
    1y

    Ill do this via screenshots of my contract, and past payments from when i had to switch to Terra Notes for the payments instead of Zelle.  Through zelle i didnt have to worry about any banking fees.  You will see in the screenshots.

    +++++++++++++++++++++++++++++++++

    that is the ledger of all my payments since having to pay on Terra Notes.   I need to look into my city's taxes.  I dont think property tax is $120 a year where im at.  

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  • Michael Murphy
    Investor · Buffalo · Member since 2025 · 45 posts · 27 votes
    1y

    The Note shows that you have $20 each month as a servicing fee and $10 for the taxes each month.  The minimum payment per the Note are $250 per month not $235.  I think it would be fair to ask them why the fees were $55 some months, but a large portion of what you thought was extra principal was going to the transaction fees that were disclosed ahead of time.

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  • Basit SiddiqiBusiness Member
    Accountant · New York, NY · Member since 2015 · 8k+ posts · 3k+ votes
    11mo

    Who is the company servicing the note? or are you paying the seller directly for the seller financed portion?
    Have you had a conversation with them? 
    What are they saying about this?

    If you are living off unemployment, you should consider selling the land and that way you have some money.

    Did you close with a title company or an attorney?
    Have you checked the assessor website - are you listed as the owner of the lot?

    Have you asked what the fees are in relation to and if there is anyway to avoid it?
    I had a mortgage company where they tried to charge me a convenience fee if I made a payment online. However, they removed the fee if I sent a check via bill pay.

    All of the above sounds really wierd and fishy.

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  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    11mo

    as others have mentioned, who is the loan servicer? Also the fees through Zelle, are those actual fees Zelle charges or the loan servicer? Lastly, if you're strapped for cash, owning land is not a wise investment. You cannot collect income or rent typically from it and it usually has very low appreciation. 

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  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    11mo

    Are you paying the seller directly or are you set up with long term escrow? Did you have an agent or broker help you with the transaction? Do you have title insurance? Have you checked county records to make sure the deed was properly recorded?

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  • Daryl Allen
    OP
    Member since 2021 · 13 posts · 3 votes
    11mo

    Im purchasing it through weve got lands.   Or should i say legacy land llc. I dont get to see the deed or anything until it is paid off. 

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  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    11mo
    Quote from @Daryl Allen:

    Ok to start things off .

    Im buying my raw land for $30k. Paid $15k upfront to initiate the contract.  Heres where it gets fun.  It’s at a 7% amortized interest rate.  Signed on april 2022.  Ive been making monthly payments of $265 at the least.  My required payments were $235.  However for the first 5 months i was able to pay via zelle with no fees.  Then i get asked to switch to terra notes and have been paying through them since sept 2022.  I noticed after about 1 year of app paying they never applied my zelle payments.   So i ask for them to update it so it reflects correctly. They never did.  So i continue to pay via requested app to today still.  Well the other day i noticed still no update,  and the extra i have been paying towards principal has been being taken as a service fee.  So i compiled a list of these service fees and some taps a $60.75 mark.   Well.  All the service fees add up to $1318.76 that wasnt ever applied to my principal.   So that leaves the $1300 from zelle payments and the $1318.76 from fees that should have went to my principal.   Ran it through the usual Google machine and a paid chat gpt and both said i should already be paid off and entitled a refund .   Can a Human please help me?   I am living off of 366 a week of unemployment for the time being so i cant afford a lawyer 

    Usually it takes but one well worded letter from legal counsel to set things straight.  Find an attorney to do this for $250.00.  
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