National City Mortgageadverse practices

P
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a verified customer
Verified customer

National City Mortgage has an outrageous and adverse practice of cashing a mortgage payment check, withdrawing the funds from the payers bank, then holding the funds for about a month, then sending the funds back by check to whatever address they have on file, then declaring that the account payment is overdue, and applying late fees, taking adverse credit reporting steps, etc. All this because they change the escrow payment amount, and if the payer does not get notice or make adjustment in payment, instead of showing a deficit in the escrow, they refuse to apply the payment at all!

This is about as insane a policy as I can imagine; they did it to me two years ago, and they have just done it again. I've asked them to contact me by email, but they refuse to do so.

This bank deserves to go broke and be taken over by a management that hopefully will be more customer friendly!

Responses

  • Kn
    knowledge18 Apr 11, 2010

    Once per year there is an escrow analysis completed on your account... this can cause your payment to increase. If you do not receive notification of this change, the payment you send in will be short which in turn it will be eventually returned to you. It's written in your mortgage note that the lender cannot accept partial payments under any circumstance. The payment is placed in a suspense account, which does not accrue interest, nor does it subtract anything from your balance. Typically, depending on the specific investor guidelines, the funds are held there either until the remaining portion of your payment is received or after passing of several days/weeks. I assure you this is not fraudulant or a rip off... it's stated in your original mortgage note that you signed when the loan was originated. If you're not sure, contact the customer service department and request a copy of your security instrument. Also, you can discuss an annual date of analysis to help anticipate changes to your montly payment.

    Hope this helps.

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