MorEquity/Mortage / Prepayment penalities and late fees
My previuos home had already sold and there was a prepayment penalty clause in the contract with MorEquity. Since the home was sold I really had no choice but to pay and going back with MorEquity based on the promise of applying the penality fees to points that would reduce my interest. I did so, made another offer on a home and moved into a hotel waiting for the loan to close. What a surprise when I showed up at the signing table and the new loan had a 3 year prepayment penality. I could have said no...but we loved the new home and did not want to stay in a hotel while we started the whole process over again so we signed.
Last month my payment went up by $57.95 due to excrow fees for taxes and insurance increasing. I have the payment automatically scheduled through my bank. My job requires me to travel extensively so I dont alwaasy open my mail on time and to be honest I d not always look at the statement from MorEquity. My normal payment was made on time as it had been for the last 8 years. I got a call at work today from the collections department at MorEquity stating they have dinged my credit by reporting I missed a mortgage payment and I owe them $170 in late fees. I asked to speak to a supervisor. Unfortnately I got the same response with no willingness to work with me. The only thing I asked them to do was waive the late fee and remove the ding to my credit report. They refused.
What a shortsited company, they are willing to impose penalities over $57 that will end up costing them hundereds of thousands of dollars in interest. My prepayment is up in 6 months. I will refinance on principle just to make sure they no longer get my business.
Buyer Beware...this is one of the worst mortage comany out there.