Saturday, April 9, 2011

I is for Impel -- A-Z Blogging Challenge

New Mortgage Man
Being impelled by my new mortgage carrier, I felt compelled to take action as a result of their pressure or coercion -- yes, coercion. You see, I feel that both words bear the same mantle -- BLACKMAIL

I was compelled to send off two (count them, two!) mortgage payments to this new mortgage holder to cover THEIR potential losses after having bought the portfolio of my previous and now bankrupt mortgage holder. Huh? Yup.

Allow me to explain. As I'm sure you know, mortgage companies trade/buy portfolios all the time, like baseball cards. They prefer packages containing people in GOOD credit standing. Who doesn't? And, they also take chances on purchasing portfolios of other mortgage companies who go bankrupt, as in my situation, two years ago. 

The bankruptcy court froze all funds, including customers' payments. New company is told by HUD they cannot assess late fees or report 'missing' customer payments to the credit bureau as unpaid for a two-year period. They will be sent all monies when hearing takes place and funds are unfrozen. I have never missed a payment as it was paid automatically on the first of the month, until I decided to use the accelerated payment program, which then put me 1/2 a mortgage payment AHEAD to make sure there would be enough money for the next payment due.

The final payment was not forwarded to the bankrupt mortgage company but was sent directly to me, immediately endorsed and forwarded to the new company with a letter directing them to apply it as payment for the transition month's payment. Even though the check shows both my endorsement and my loan account number and their deposit stamp on the back of the check, they don't know where they put it! So, until they can find out where it is, on their books, my account shows a missing payment! 

I received a stern letter this month saying the moratorium has been lifted and, if I don't send them the 'missing' payments (the transition one and the other still frozen by the bankruptcy court), they were now going to have to report me (against their will, I am sure) to the credit bureaus as behind on my payments because they don't actually have the physical funds in their hands. So, to get myself current and not be reported to the credit bureau, I should send them a check. They can't help it, the moratorium has been lifted, and they now can not only report to the credit bureau but also assess late fees. If I send them the money, that will bring me current on their books and, when they get the money from the bankruptcy court, they will apply it to my note AND I WILL BE AHEAD and won't have to worry, anymore. Huh? This shouldn't be my problem to worry about, at all.

But, suffice to say, I am worried and don't want a bad credit report.  So I, in fact, have felt coerced into sending them two additional mortgage payments to cover their potential investment loss while waiting for the bankruptcy court's hearing and release of customer' funds -- at which time, they have promised I will then be given the choice of either having these monies returned directly to me or applied to my mortgage, thereby making me two (2) payments ahead! Bottom line, I think they're dabbling in the dark side of blackmail, or, at least, a mini-bailout. What do you think?


  1. A very compelling post and a pleasure to read,

    Have a peaceful Sunday.

  2. whoa...i think that's unfair! almost like you were given a choice, but actually, you had no choice. nobody would want to get a bad credit report! sigh.

    hi, thanks for visiting my 'H' post. :)

  3. Thanks for the visit to my blog! I loathe mortgage brokers, and the entire credit system. The only way you can get credit is if you already HAVE credit (for credit, read 'debt'), which is kind of stupid if you ask me.

  4. It does sound like a little bit of blackmail, or bailout, as you said. It doesn't sound" fair" anyway...but those guys are never wont to be fair. Hate you have to go through that.

  5. Well that sucks! All because of red tape and legalities. I'm sorry!

  6. That's insane! It does sound like blackmail.

  7. That sounds crazy, how terrible. Sorry this happened.

    I'm just coming by from the A-Z Challenge, it's great to meet you!

  8. I think that my head hurts...bad!! And, yeah, I would have done the same thing *sigh*

  9. It is very unfair but a good read.

  10. End result? I paid them the money because legal action would have been too expensive BUT I have reported them to my state's DA and to the FL DA's office. They said they were inundated with folks having to deal with this problem and that it is more widespread than originally thought. The problem is that the mtg companies know that legal defense is too expensive and most people will capitulate and pay rather than have their credit ruined. 8-(