Can I recoup funds for foreclosure costs ifmy lendermade a mistake causing these costs to be incurred?

Get Legal Help Today

 Secured with SHA-256 Encryption

Can I recoup funds for foreclosure costs ifmy lendermade a mistake causing these costs to be incurred?

In 09/10, my lender misapplied funds to my account. I asked for an amount to get caught up, including October’s payment, which I paid. In January. I received a summons about foreclosure. They did not apply funds to October; they applied the payment to principal. This caused me to be further behind then what I thought. Granted I did fall behind again, but was able to take care of missed payments in January. Now I am expected to pay $1717 in fees. I begged and pleaded multiple times for a “break” (not removal) of fees. Since they made an error. Is this possible?

Asked on February 9, 2011 under Real Estate Law, Ohio

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If you were already behind, the way payments are applied are first to outstanding interest owed and then to principal. If the amount you originally paid was less than the amount owed, that goes into a suspense account until the remaining amount owed is paid and then the month's payment is made/applied. If your lender or servicer (sometimes it is one and the same company) misapplied your payments, you need to file a consumer complaint with the entity who regulates your lender or servicer. Contact your state's department of financial institution to find who regulates that company and then file a complaint.  Make sure you include as much relevant paperwork as possible and keep on top of the complaint process.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption