MORTGAGE RIGHTS
Challenging the Amount Due Application of Payments for Delinquent Months
The illustration shows one large payment being applied to past due months. My clients paid $14,021.78 to cover 10 overdue months. My clients were behind because the loan servicer stopped accepting their payments. The mortgage specifies how the payments are applied. "Payments shall be applied to each Periodic Payment (monthly payments) in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under the Security Instrument (the mortgage), and then to reduce the principal balance of the Note. If more than one Periodic Payment (monthly payment) is outstanding, Lender may apply any payment received from Borrower to the payment of the Periodic Payments (monthly payments) if, and to the extent that, each payment can be paid in full. To the extent any excess exists after the payment is applied, to any late charge due. (I have skipped some sentences that do not apply in this situation and translated the capitalized words for you.) This passage from the mortgage (yours has language like this too) can be summed up into simple rules. If more than one month is overdue and the borrower makes one large payment to be applied to the overdue months: pay the oldest month first, and continue paying delinquent months in full until you either run out of funds to pay delinquent months in full, or all of the delinquent months have been paid. If principal and interest have been paid for all of the delinquent months, pay late charges out of the remaining funds. I applied these rules to the illustration at the top of this section. The first thing I did was see how much of the payment had been applied to principal and interest. I found that $9,089.29 in total had been applied to principal and interest with $4,932.49 left over. I then searched th account history to see if any of the leftover money had been applied to late fees. They had. $264.20 was applied to late fees. I still had leftover funds of $4,668.29, so I went through the account history again to see if the leftover money was accounted for. I found 3 entries for "miscellaneous repayment" in the amounts of $2,149.48, $95.00, and $182.67, which totals $4,127.15. That left $541.14 unaccounted for; that is, I could not find any entries in the account history for that amount. I then asked myself whether my clients really owed the loan servicer $4,127.15 (the amount paid to miscellaneous repayments). It is not unusual to find that a loan servicer has paid property taxes and/or force-placed insurance. When this is done, the account history will list a "servicer advance." If my clients really owed $4,127.15 to the loan servicer, I should have found "servicers advances" that totaled this amount. I found no "servicer advances." So far as I can tell, the servicer just took the money.
NEXT: Servicer Changes
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Challenging the Amount Due Application of Payments for Delinquent Months
The illustration shows one large payment being applied to past due months. My clients paid $14,021.78 to cover 10 overdue months. My clients were behind because the loan servicer stopped accepting their payments. The mortgage specifies how the payments are applied. "Payments shall be applied to each Periodic Payment (monthly payments) in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under the Security Instrument (the mortgage), and then to reduce the principal balance of the Note. If more than one Periodic Payment (monthly payment) is outstanding, Lender may apply any payment received from Borrower to the payment of the Periodic Payments (monthly payments) if, and to the extent that, each payment can be paid in full. To the extent any excess exists after the payment is applied, to any late charge due. (I have skipped some sentences that do not apply in this situation and translated the capitalized words for you.) This passage from the mortgage (yours has language like this too) can be summed up into simple rules. If more than one month is overdue and the borrower makes one large payment to be applied to the overdue months: pay the oldest month first, and continue paying delinquent months in full until you either run out of funds to pay delinquent months in full, or all of the delinquent months have been paid. If principal and interest have been paid for all of the delinquent months, pay late charges out of the remaining funds. I applied these rules to the illustration at the top of this section. The first thing I did was see how much of the payment had been applied to principal and interest. I found that $9,089.29 in total had been applied to principal and interest with $4,932.49 left over. I then searched th account history to see if any of the leftover money had been applied to late fees. They had. $264.20 was applied to late fees. I still had leftover funds of $4,668.29, so I went through the account history again to see if the leftover money was accounted for. I found 3 entries for "miscellaneous repayment" in the amounts of $2,149.48, $95.00, and $182.67, which totals $4,127.15. That left $541.14 unaccounted for; that is, I could not find any entries in the account history for that amount. I then asked myself whether my clients really owed the loan servicer $4,127.15 (the amount paid to miscellaneous repayments). It is not unusual to find that a loan servicer has paid property taxes and/or force-placed insurance. When this is done, the account history will list a "servicer advance." If my clients really owed $4,127.15 to the loan servicer, I should have found "servicers advances" that totaled this amount. I found no "servicer advances." So far as I can tell, the servicer just took the money.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Challenging the Amount Due Application of Payments for Delinquent Months
The illustration shows one large payment being applied to past due months. My clients paid $14,021.78 to cover 10 overdue months. My clients were behind because the loan servicer stopped accepting their payments. The mortgage specifies how the payments are applied. "Payments shall be applied to each Periodic Payment (monthly payments) in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under the Security Instrument (the mortgage), and then to reduce the principal balance of the Note. If more than one Periodic Payment (monthly payment) is outstanding, Lender may apply any payment received from Borrower to the payment of the Periodic Payments (monthly payments) if, and to the extent that, each payment can be paid in full. To the extent any excess exists after the payment is applied, to any late charge due. (I have skipped some sentences that do not apply in this situation and translated the capitalized words for you.) This passage from the mortgage (yours has language like this too) can be summed up into simple rules. If more than one month is overdue and the borrower makes one large payment to be applied to the overdue months: pay the oldest month first, and continue paying delinquent months in full until you either run out of funds to pay delinquent months in full, or all of the delinquent months have been paid. If principal and interest have been paid for all of the delinquent months, pay late charges out of the remaining funds. I applied these rules to the illustration at the top of this section. The first thing I did was see how much of the payment had been applied to principal and interest. I found that $9,089.29 in total had been applied to principal and interest with $4,932.49 left over. I then searched th account history to see if any of the leftover money had been applied to late fees. They had. $264.20 was applied to late fees. I still had leftover funds of $4,668.29, so I went through the account history again to see if the leftover money was accounted for. I found 3 entries for "miscellaneous repayment" in the amounts of $2,149.48, $95.00, and $182.67, which totals $4,127.15. That left $541.14 unaccounted for; that is, I could not find any entries in the account history for that amount. I then asked myself whether my clients really owed the loan servicer $4,127.15 (the amount paid to miscellaneous repayments). It is not unusual to find that a loan servicer has paid property taxes and/or force-placed insurance. When this is done, the account history will list a "servicer advance." If my clients really owed $4,127.15 to the loan servicer, I should have found "servicers advances" that totaled this amount. I found no "servicer advances." So far as I can tell, the servicer just took the money.
 MORTGAGE RIGHTS
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.
Challenging the Amount Due Application of Payments for Delinquent Months
The illustration shows one large payment being applied to past due months. My clients paid $14,021.78 to cover 10 overdue months. My clients were behind because the loan servicer stopped accepting their payments. The mortgage specifies how the payments are applied. "Payments shall be applied to each Periodic Payment (monthly payments) in the order in which it became due. Any remaining amounts shall be applied first to late charges, second to any other amounts due under the Security Instrument (the mortgage), and then to reduce the principal balance of the Note. If more than one Periodic Payment (monthly payment) is outstanding, Lender may apply any payment received from Borrower to the payment of the Periodic Payments (monthly payments) if, and to the extent that, each payment can be paid in full. To the extent any excess exists after the payment is applied, to any late charge due. (I have skipped some sentences that do not apply in this situation and translated the capitalized words for you.) This passage from the mortgage (yours has language like this too) can be summed up into simple rules. If more than one month is overdue and the borrower makes one large payment to be applied to the overdue months: pay the oldest month first, and continue paying delinquent months in full until you either run out of funds to pay delinquent months in full, or all of the delinquent months have been paid. If principal and interest have been paid for all of the delinquent months, pay late charges out of the remaining funds. I applied these rules to the illustration at the top of this section. The first thing I did was see how much of the payment had been applied to principal and interest. I found that $9,089.29 in total had been applied to principal and interest with $4,932.49 left over. I then searched th account history to see if any of the leftover money had been applied to late fees. They had. $264.20 was applied to late fees. I still had leftover funds of $4,668.29, so I went through the account history again to see if the leftover money was accounted for. I found 3 entries for "miscellaneous repayment" in the amounts of $2,149.48, $95.00, and $182.67, which totals $4,127.15. That left $541.14 unaccounted for; that is, I could not find any entries in the account history for that amount. I then asked myself whether my clients really owed the loan servicer $4,127.15 (the amount paid to miscellaneous repayments). It is not unusual to find that a loan servicer has paid property taxes and/or force-placed insurance. When this is done, the account history will list a "servicer advance." If my clients really owed $4,127.15 to the loan servicer, I should have found "servicers advances" that totaled this amount. I found no "servicer advances." So far as I can tell, the servicer just took the money.
 MORTGAGE RIGHTS
The site does not provide legal advice. Neither Susan LaCava nor her law firm, LaCava Law, S.C., represent you until there is a signed retainer agreement.  MORTGAGE RIGHTS