Pennsylvania | Real Estate Law
Legal Question
Mortgages
My father refinanced his home 3 yrs ago; initially made several payments on time each month - probably 8-10 payments without fail, in those months the principal balance was reduced only on 1 occassion and only by $23 dollars. Is this right?
We are now getting ready to sell the house; when we called for the payoff amount, we were told $71,953 when the original loan amount was $65,802. The explanation we received for this was that at one point during the loan, my father requested a reduction in his payment so they lowered his $550 payment to $500 a month and added on an additional 19 months of payments to the end of the loan. Then they took the interest for those 19 mths and added that to the principal.
When we questioned this, they were very defensive. We asked for a meeting with a manager who could give a more legitamate explanation of the difference. The meeting was scheduled for two days following; however, they called back the next day and offered to take $6,000 dollars off the loan.
I am sure this isn't normal operation for mortgage lenders but I have searched endlessly on the web for laws regarding mortgages and haven't been able to find any. Any suggestions about whats going on here or websites to check out?
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Read More Answered By: Mark Johns |
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