Legal Question in Real Estate Law in Maryland

Can a mortgage company refuse payments if late

In 11/03 I did not have the money to pay my mortgage, in Dec. 2003, I did, and made both of them, and they sent them back to me stating that it was not enough money, and that they received it late, and that I had to pay them for 3 months, I did, and they returned it to me again stating that it was not enough and that they wanted 4 payments, i sent it to them again, and to this date they have refused all payments made.

I am now in what they are telling me in foreclosure, and that they will take my house from on the 28th of this month April 2004 unless I pay them all back payments, which I have been making, along with over $2,000 in legal fees, and found out that after a certain time, they will only take a certified check or m/o, if I do not have them all of this money on 04/27/04, they will come into my house on the 28th and throw me out.

I have made a couple of calls to my mortgage company in January and in February 04, but they told me that they will not even talk with me until I have made my account current.

All I would like to know is, are they able to refuse payments that I have made to them, being late or not.

Any help anyone can give me will be greatly appreciated, please, as I am running out of time, Thank You


Asked on 4/15/04, 12:21 am

1 Answer from Attorneys
Robert Sher Wagshal and Sher

Re: Can a mortgage company refuse payments if late

Unfortunately, your loan documents in all likelihood contain a provision that states that the mortgage company will not accept less than the full amount of any payment due. After the late payment deadline (usually the 15th), this would require you to tender the 5% late charge to be accepted by the mortgage company.

Most mortgage companies will work with you if you fall behind, at least if you previously were always on time. They really don't like to foreclose if it can be avoided. You would be well advised to contact customer service, preferably through an attorney, and see if they will work out a "catch-up" payment plan to avoid foreclosure. You will have to offer a significant up front amount in all likelihood.

If the foreclosure sale goes forward, you won't lose possession immediately, but after the purchaser at foreclosure goes to settlement, you'll be subject to eviction.

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Answered on 4/15/04, 11:33 am


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