Profile picture for user65934792

Isn't it standard operating procedure to apply mortgage payments to interest and then principal?

  • May 20 2013 - Boston
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (7)

Profile picture for daveskow
yes.....thats standard practice
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user65934792
That's what I thought.  I paid my mortgage 15 days before it was due and they applied it all to principal.  They said payments received 14 days before the due date are applied this way.  I am trying to get the payment reallocated but I am not getting anywhere.  I am getting worried.  My mortgage was sold to Green Tree and I have never been late.  I always pay my mortgage early and pay the exact amount due.  This is so frustrating.
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for Outer Banks N C
If you make an early payment sometimes the service company (bank or someone else that collects payments) will apply it to interest thinking it is an extra payment. You need to straighten them out or don't pay too soon. Ask about automatic payments.
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user65934792
I am not sure why they would think it was an extra payment when I had a payment due.  They issued the mtg statement on 5/6/2013 with a due date of 6/1/2013.  They received the payment on 5/15/2013.  It should have been applied to my regular mortgage payment.  I paid the exact amount due.
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

They think it is an extra principle payment because that is what they are taught to think.  You need to label( in the memo space),each and every check with its purpose.
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for user65934792
I paid electronically.  This is my 4th payment to Green Tree.  All payments have been in the exact amount and I have had no problems until this month.  My last payment was received on the 16th of the month and it was applied correctly.  The first payment I made to them was by check and it took nearly 12 days for them to receive/post it.  After that I decided to pay electronically and it gets posted in 24 hours.  Shouldn't it be disclosed somewhere that if the payment is received 14 days before the due date it will be applied to principal, especially if that is their policy?  I am really worried that my payment will not be reallocated in time and it will look as though I didn't make my regular mortgage payment.  
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Green Tree is not a "real" mortgage company. Watch every thing they do closely. If you pay it early, they shouldn't be able to apply it to interest that isn't even due yet. What do you want them to do? I don't think it is like a credit card payment where they could act like the fact that you paid 14 days early means you still owe a payment on the first. If you're worried, hold the money until it is due, then pay it. If you want it to apply to principal, which most of it should automatically, then designate it as early principal. Then you may have to pay again on the first to cover the interest. It sounds like you are paying early as a cash flow management idea, because (or in case) you might not have it on the first. You aren't trying to double up or prepay. Anyway, your servicing company is sketchy at best. Best of luck.
  • May 20 2013
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.