OfflineSomeone asked me how did a partial monthly payment work. This person had made an agreement with the bank to make a partial payment.(not the full monthly mortgage amount) They paid what was discuss by the deadline date the bank gave for that month, with the agreement that the next month their payment would be paid and the balance from the previous month. What the bank didnt tell this person was that the partial payment they made would not be applied to the mortgage but is sitting on hold until the rest of the payment is sent for that month. Meanwhile, the bank sent to the credit bureaus 30 days late as if the homeowner never paid the monthly payment.
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Well that wasn't very ethical. How can you avoid and/or fix that problem?
Those who say it cannot be done should not interrupt those who are doing it.
the bank has failed to hold up to their part of the agreement. However, did this person pay the following month and the other half of the payment? It was not stated in here and maybe that's why the bank sent a credit report to the bureau. If he paid both the following monthly payment and the other half of the payment, then the bank are in the wrong and unethical. Sometime, when we call the bank, we talk with so many people and sometime they failed to communicate to the proper channel as what was indicated. I think in order to avoid this from happening, you may have to call the bank and ask them to put in writing. As far as trying to resolve the issue above, you may have to contact the bank again and try to re-address it with the manager. Good luck and happy investing!
Lloydsap
Yes that person a co-worker, actually had the agreement set for May. She made the payment in May as agreed and was supposed to amd did pay the agreed amount this month June. However, when June 6 got here. She received an alert from her credit report and sure enough... It was her bank. When she called back to ask about it, a rep from the bank told her it was a partial payment and even though the agreement was made for the other payment to be applied by June 16, that it can not be applied to the principal because it was not the full amount and therefore it is considered 30 days late and when she mail in which she did before the deadline date it will be applied. So it was applied both the partial june payment and the balance, but the bank will not call the bureaus to change the history status from being 30 days late. We have to watch ourselves. The banks seem not to care at all but getting their money. If its the bank mistakes in which they make mistakes a lot.. You have to prove that even an i was dotted. I told her in the future she has to make sure every rep she talks to have a name id number as such or talk with a supervisor. Ive heard of cases when you speak with someone over the phone and you ask their name, alot of times they dont want to give it to you or repeat it. And sometime they will give you a name that's not theirs.
I told my co-worker that being the way the economy is today, even the banks you cant trust. If its not in Black and white it will be denied. And she had nothing to prove. She is going to have to make sure in the future she has the entire amount, like I told her, it might not have been a good idea, but I wouldnt sent anything in until I had the full amount and wouldve just gotten a late on the credit report, because sometimes when you send partial payments in the banks will put in a mis fund and when you send the rest, unless a note is attached or you are verbally talking with someone on the phone, you have to specify that that part of the money is for your mortgage. Sometimes partial money like that the banks can stick into an escrow account or pay whatever late fees you have, then by the time you send the balance, you still owe more. I would not suggest sending partial payments for that mere fact.
Thanks for responding... Peace
Sorry about your friend's situation. Yeah, in this case, the bank dropped the ball and this could now ruins your friend's creidt. Advise her that she may have to contact the credit bureaus and explain them her situation. She may also have to provide check stubs to prove her case, since the agreement with the bank was verbal and the bank failed to hold up their part of the agreement.
The bank is responsible, but we must do everything that we can possibly do to protect ourselves from this type of situation. For instance, you mentioned someone in the bank could have lied about his or her name, that's why is important when we call the bank for issue like this, we want them to have in writing for confirmation and make sure to inclued your lona number on the invoice or letter. Good luck and best wishes to you all!
Lloydsap
I dont see where the confusion is.. She WAS 30 days late.
Thanks for the information. I did pass it on for her not just with real estate but anything to get in black and white. And make sure all ts are cross and is dotted. If she had this information in writing, she wouldve been able to prove herself. A similiar thing happen to me, when a couple of year ago, I sent the mortgage company a full payment in the same envelope, Half being a money order that my fiance helped me out and half being a check. They cashed the check put the amount on the account but didnt apply the funds from the money order. They sent me to the credit bureau, but since I knew exactly where the receipt was from the money order, I had to send for a copy of the front and back, that took 30 days, but it proved I had paid, because the mortgage com had cashed the money order, but never applied it. It took quite sometime for them to send a letter to the creditors to remove the late payment. (They claimed they had to research) what was there to research when your bank stamp and information was on the back of the money order. When dealing with any kind of real estate, one must stay a few steps ahead of the(game) and think fast.
That's true she was late. But like I told her, she must think ahead of any situation when it is dealing with money and your home especially