aM I GETTING SCREWED, AND WHAT TO DO?

Question

I am in a land contract. my contract was signed on 1-27-06. Friday we went to make a payment and they had told us we were late. In our contract it sates we are due the 27th of each month. Also when we asked for a copy of all our payment history the info was different of the paper than the contract. Our intrest rate is susposed to be 87 percent that is what is in the contract. They are making us pay 9.5 percent intrest. So the whole time we have been paying on our house we have been paying 1.5 % more intrest than what we were susposed to. everytime we we make a payment only like 50 dollars goes to the princapal.. in one year i paid 6148 to intreest and 604.68 to principal and 1543.68 in escrow. what do we do. please help

Answer 1

Photocopy your payments, and only pay based on the contract rate. If they balk, get an attorney.

Answer 2

Be sure to keep a portfolio of the payment made....keep copies of the checks or money orders, never pay cash.

Also make them initial and date the checks when you hand them over. This way the markings will show proof of receipt on those dates.

When the bank receives the cancelled checks you can get a copy.

If push comes to shove, you may have to take them to court and have them reassign the payment allocations
interest vs principal.

Also make sure to have that original or a copy of that original contract.....it is proof that interest should be different than they are stating.

If they are overcharging interest, tey are doing it because they are making you default on your payment schedule by standing the payments off....and cashing them in late on purpose...

One more thing to do is to mail the payments in with certified return recept with the USPS.

Then it would be their word against the US postmasters word on delivery.

First, write them a letter showing the discrepancies....and ask them to fix it. Tell them you will give them 30 days to fix this problem before consulting an attorney. Request a "Case manager" so that you deal with the same person everytime you come into contact with them.

This keeps them from passing the buck, saying the other guy screwed up....

shoot me an email if you run into any more probs...

Answer 3

It is typical that about 95% of your mortgage payment in the early years goes to interest and the rest to principal. The interest is tax deductible. Over the years, the amount that goes to interest will decline (as the balance declines, too) and the amount that goes to principal will be higher.

I would meet with another lender and show them what you've got and see what they say. Or bring it up with the attorney who handled your settlement. There's tons of paperwork at settlement, and you can't notice everything, but the interest rate compared to what you were quoted is something to definitely examine.

If you're right about the change in interest rate, these "mistakes" are not rare. You wouldn't be the first to have the interest rate changed by a mortgage company hoping you wouldn't notice. Another explanation is that if you didn't "lock in" your interest rate at the time of application, and the interest rate went up prior to settlement, that could explain the difference.

Good luck.

Answer 4

Get an attorney ASAP no matter what the cost. Find one that will take payments. You're only a little late, no big deal. Everybody has that happen. Fight it!

Answer 5

Get a lawyer to look over all the paperwork, it might cost some but doing your self will be a lot harder than a real estate lawyer who knows all the ins and outs

Answer 6

You might have signed a variable contract or adjustale rate.

Answer 7

Get organized. Use certified mail. resort to an attorney if you must.

Answer 8

Lawyer!!!!!!

Answer 9

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