Posted by John Behle on November 12, 2001 at 02:04:04:
In Reply to: Re: Paper game posted by Patricia Hogquist on November 11, 2001 at 20:34:52:
I don't have any dealings with Fairbanks or US Bank. No direct lender or secondary lender buying a note has any right to change anything about how your payment is applied.
A note or mortgage is a contract. It is a two way contract. Clear language spells out payments, interest rate, and all other terms of the note. No lender or note buyer can change that unless there is some form of clause giving them authority to do so.
Most notes and mortgages apply the majority of the payment towards interest. Sometimes just a few dollars goes towards principle reduction. Only towards the end of the note is a large part of the payment applied towards principle. That is purely how an amortized loan works.
My suggestion would be to get a copy of the note, a copy of all of their correspondence, amortization schedule, payment coupons or whatever information you have. Review it carefully. Call them and ask them to explain how and why the payments are applied. Either they are mis-reading things and mis-applying the payment or they are doing things correctly and it is just a matter of understanding how and why.
If it doesn't make sense at that time, or it is clear they are in error, then consider an attorney - but make sure he/she is an experienced real estate attorney with a knowledge of notes and mortgages. Most lawyers have very little training in this area and it can cost you a great deal to end up with someone in-experienced.
Hope that helps. John
- Re: Paper game test 21:41:38 5/05/2005 (0)