Legal Question in Real Estate Law in Connecticut

Farmer's Home Loan

I've owned my house for 14 years through Farmer's-USDA. Every year I send in the finacial info they ask(w-2's)etc. Recently they sent me a letter saying they goofed when calculating my interest credit amounts(interest rate at which determines my mortgage payment) which lowered my monthly payments and I owe them 10,000 dollars. These errors occured over the last five years. Is it legal for them to go back and ask me to pay this interest when they made the mistake?


Asked on 3/18/03, 12:58 pm

1 Answer from Attorneys
John Heffernan Heffernan Legal Group, LLP

Re: Farmer's Home Loan

It probably is legal. You had a contract with them to pay a certain rate, depending on your income. They miscalculated the rate, but the contract is the contract. It's sort of like when the bank credits you with a $10,000 deposit when you put in only $1,000. It's their mistake, but it's not your money. Or if you took out a certificate of deposit paying 3% and they calculated the interest at 6%. Their mistake, but money you shouldn't get. I would ask them for several years to pay it off (at no interest) because it was their mistake and they can't expect you to cough up all the money at once since it took years build up.

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Answered on 3/18/03, 3:20 pm


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