How can I be late on my house payment?
Last year, like a lot of home owners in Muskegon County, and all over West Michigan, I received a notice that my property taxes had been lowered. Cedar Creek Township realizes that property values have declined and they must have decided acknowlege this.
I also had a power boat and I sold it last fall. The insurance on the boat was a rider on my home owners policy. As soon as I sold the boat I canceled the insurance and figured this would decrease my escrow account for my taxes and insurance by a reasonable amount.
Early in January I received a letter from my lending institution stating that my payment amount would increase by only a little over $10. NOW WAIT ONE MINUTE! How can this be? My property taxes were less and my home owners insurance is less but you decide to charge me MORE?!!! This just doesn't seem right.
Since Cindy and I both sell real estate it is a challenge from time to time to make ends meet. Making our house payment takes top priority but sometimes there just is not enough money to go around. Yesterday we received a check in the mail for an amount more than one months mortgage payment. Apparently the escrow account had too much money in it.
I hear all the time that lenders are trying to work with home owners to reduce the number of REO (Real Estate Owned, aka, Bank Owned homes). Why do they make it more difficult to make the payments instead of being honest and only billing for the amount they need? Is this some new Christmas Gift program they have designed?
This brings up several questions:
Did I receive interest on my money? Am I due to be reimbursed late fees I paid? Can I send in 12% less on my payments now and be current?
This just doesn't make sense and is one more example of how inept the lenders are. No wonder banks are in trouble. This is nothing new though. I suspect something is not right every time I pulled up to an ATM machine. It asked me to enter the amount I want in dollars and cents, but will only spit out cash in $10. increments! And then it is also labled with braile! My Grandpa was blind. I am so thankful I never saw him pull up to an ATM!
