Mortgage Company Won't Accept Partial Payment

18 years ago

Friends (a young couple) have been having a lot of financial problems. The couple agreed to pay a reduced mortgage amount per month until they can get on their feet. The wife recently got a full-time job and from what I gather, the husband, a trucker is paid in cash. The couple was late last month on the mortgage and when they submitted the less-than-agreed amount, the mortgage company rejected it and stated the couple has to submit the full amount within a week, otherwise... I've tried reading some of the posts here, but I don't know how to advise the couple.

Comments (7)

steve_o
18 years ago
What does their mortgage say? Did your friends receive anything from the mortgage company stating the terms and conditions of the new payments? That should outline what action the mortgage company will take if they default on payments. As in so many other cases, the contract rules what happens and doesn't happen.

Your friends may not have more choices than either pleading their case again with the mortgage company or - better -- finding some way to come up with the additional money in a week and then trying to find a way to either get a little ahead on payments or bank something from the next time either of them gets paid. A third option, though much more drastic, is to determine if a house is "in the cards" for them at this point. Houses are expensive to keep and keep up. They may be better off selling at some profit now and getting back on their feet before attempting home ownership again.
joyfulguy
18 years ago
Fairly iron-clad rule when you make an agreement with a lender (credit card co. or whomever) to make reduced payments ... is to fulfill.

Without fail.

If you don't - major hassles, usually.

Steve's right - the contract rules.

Probably, in such a case, there wasn't any paper - issued, at any rate.

If the lady got a full-time job - how come the lack of fulfillment? On time, as agreed.

Variety may be the spice of life - but procrastination ain't, as I can testify to from personal experience.

Good wishes to your friends for getting this straightened out without too much hassle.

Could be the mortgage Co. is teaching them a lesson. Showing them that lack of fulfillment isn't to be taken lightly.

Could be that, since they defaulted, the mortgage Co. will require that they go back to paying the previously required amount from now on.

Non-fulfillment of contract frequently voids it.

You can't play games with these guys!

Well - you can. You can decide when you'll pay - this time. Only.

But - if you don't fulfill your end of the bargain - then the ball isn't in your court any more, and you must live with the consequences.

Some lenders' contracts state that if the borrower defaults on a payment, the entire amount of the debt becomes payable - right then.

Sorry to offer such tough suggestions.

ole joyful
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davidandkasie
18 years ago
I understand their problem, but honestly they have no choice but to pay what the mortgage co wants from them or risk losing the house.

many people think that a creditor is requried to take any and all payments, but the simple fact is that in most places they can demand full payment. We used to take partial payments on pager bills and rent we charged to customers. Then it got to where they were so far behind that we refused to take a partial anymore. We double checked with the state, and they said that ANY creditor can demand payment in full and REFUSE partial payments.

Since your friends worked out an agreement for temporary reduced payments, they should have stuck to it, even if it meant giving up something else. if they smoke or drink, they should have cut those out. If they go out to eat, they could skip that and fix meals at home, even the meals for their lunch breaks. Sell one vehicle and share the other one if they had 2 vehicles. cable or satellite tv, cut them OFF. almost anyone can easily find a way to save 500.00 or more a month.

My wife and i "have" almost a thousand dollars left over after mandatory bills each month, but before groceries and etc.. Sometimes things crop up and we have just enough to buy groceries. When they do, we pay our bills first, then buy store brand groceries. We had to do this recently due to our 18 month old having 2 hospital stays in 3 months. One stay is now paid for, and the other should be by next month. I personally try to pay off those type expenses immediately rather than pay them off over a long period of time. This way i do not add to my recurring bills, and only have a tough time for a month, rather than constantly adding recurring bills. If i really needed to cut costs due to hard times, i can cancel cell phone and satellite and save 200.00 instantly. Then i can cancel a few other items and get at least 300.00 more.

i sincerely hope your friends get this worked out. If they have credit card bills, tell them to skip a payment on those to make the house note THIS time. it will not hurt their credit any more than it already likely is. But if they do skip payments elsewhere, they need to IMMEDIATELY call the creditors and see if they will allow them to skip one payment jsut to catch up. then they should cut ALL non-mandatory expenses.
agnespuffin
18 years ago
Pay the agreed amount first. Everything else will have to wait. The mortgage company can foreclose and there will be no place to live. Cut the non-essential like cableTV, computer service, cell phones, movies, eating out, etc until they get back on their feet.
joyfulguy
18 years ago
Missing mortgage payments can be rather like playing with fire ...

... both can make a house disappear - real fast.

Except - after a fire, you may have some insurance.

After a mortgage foreclosure, you may have some equity left to be returned to you.

Eventually - after the mortgage is paid off and all the (usually numerous - and expensive) ancillary costs are dealt with.

ole joyful
garden_graphic_gal
17 years ago
How many months behind to you have to get before a foreclosure is started? Does it depend upon the lender?
kudzu9
17 years ago
garden_graphic_gal-
No way to say. Depends on the lender, the mortgage terms, and the State/local laws, and your prior history of payment. One missed payment is theoretically enough to start the process unless the mortgage is explicit about a grace period. It's not a question you want to answer by getting behind...

Mortgage Company Won't Accept Partial Payment

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steve_o

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