how many days notice does a bank have to give before payment is due when they increase it?

Question Details: I received notice on Tuesday that my bank increased our modification trial payment by $330. Our payments are due on the first of each month. Dec. 1 is less than 14 days away, my question is how many days notice does a bank have to give before an increased payment is due?

Asked 11/20/2009 under Real Estate | 150 View(s) | More Legal Topics

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Real Estate Law Answers

Typically the bank cannot change or increase the trial modification payment because this is a precursor for approval for a full modification.  In terms of the bank, if your bank is regulated by your state, contact the State's financial institution's department.  If your bank is a national bank, contact the Office of the Comptroller of the Currency.  If your bank is regulated as a savings bank, contact the Office of Thrift Supervision.

You should review your paperwork to determine if this increase is actually now part of the actual modification, and not part of the trial or if it is actually an unfair increase without written approval on a contract by you (which by the way the bank would need to increase these payments based on the Statute of Frauds).

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