Mortgage Company Not Following Mortgage Agreement

[camel1971]

My question involves real estate located in the State of: Colorado
My problems began when GreenTree/Ditech bought my mortgage. Any extra principal that I sent was put into a suspense fund and not applied to principal. My agreement clearly states that I can pay down principal at any time. I wrote them with a copy of that clause, yet they continued not applying extra principal until 2 or 3 letters from my lawyer. I have never been late on mortgage payments. At the beginning of this year, NewRez took over the loan and was accepting extra principal, but last month I sent in a bit more than double the normal payment with the indication on payment slip that ALL of the extra was to go to principal. They applied part to principal, but applied most to next month's payment and sent me a $0.00 bill. I'm thankful that I can do this, but they are not following the contract nor my legal wishes about how to apply monies. I've also seen plenty of reviews that NewRez does a lot of stuff like this. What recourse do I have for this (I have written them already)? Also, I imagine that an attorney could find enough mortgagors to file a class action suit. GreenTree/Ditech had a lot of similar complaints. I feel these companies are predatory and that some action needs to be taken. Thank you for your help.

[adjusterjack]

I feel these companies are predatory and that some action needs to be taken.

By who? Obviously not you, or you would already have hired a lawyer for several thousand dollars and sent him on a quest to build a class action. Or sued to obtain an injunction against the mortgage company.

I'm guessing you don't want to spend that kind of money on litigation.

You're probably not losing enough to make it worthwhile.

Just keep sending extra money to pay down your mortgage. When you've paid off your house you can kiss the vultures goodbye.

[pg1067]

What recourse do I have for this (I have written them already)?

At present none. If, when you get to the end of the loan term, the mortgagee fails to release the property, then you'll have legal recourse. Until then, this is nothing but an accounting discrepancy.

[bcr229]

Greentree/Ditech was sued a few years ago over similar shenanigans and had to pay a hefty fine.
https://www.ftc.gov/news-events/blog...en-tree?page=1

Note this guy's comment, it sounds remarkably like what you are experiencing with them not applying extra payments to principal.
https://www.ftc.gov/comment/366851#comment-366851

My suggestion is to refi and get out from under them if you can make the numbers work. At least rates are low now.