Submitted by Anonymous on Tue, 11/25/2008 - 12:21
Posted in
I worked out what I thought was a fair modification with my bank. I was 6 months behind, they added the interest to my loan, and my new payment amount is supposed to go toward principle and interest. After fighting with the bank for three months to begin to send me monthly statements, I now see that ALL my payment is going to interest. When I called the rep told me I need to pay off the " late " interest before any money goes to principle but they already added that to my total balance. Am I paying what I was late on twice? Can I stop paying because the bank breached its own contract? What can I do?
Editor's Response
Sorry, but without seeing the documents in question, I have no idea what you and the bank are obligated to do. Unless you can find someone at the bank who can explain to your satisfaction what their position is, I would recommend having an experienced real estate attorney look at the docs. I know it will cost money, but you need to establish your rights and obligations pursuant to the workout agreement.