Legal Question in Credit and Debt Law in Illinois

Today, I make my payment, on time, in full, online, have no missed or late payments and excellent credit. I have the property up for sale but have been unable to sell the home because I owe more than anyone is willing to pay. Lots like it but I need more to pay it off than the market will bear.

I want to pay the principle down so that I can sell at a lower price, and pay off the loan without going through , refy�s , short payoffs, short sell, ect� but do not have a bucket of extra cash to do this or bring to closing.

So� What can happen if I short pay my interest only?

Here is what I mean:

I make my payment, on time, at the correct amount (total amount on bill stub) but� instead of paying online, I pay by mail with check(s), AND, do it as follows:

1) Make out 1st check for the correct escrow amount. And state in the memo line �for escrow only�

2) Make out 2nd check for the interest amount BUT,, instead of paying the amount on the bill stub ($685) I short that amount to $185. And state in the memo line �for interest only�

3) Make out 3rd check for the principle amount BUT,, instead of paying the amount on the bill stub ($207) I pay an extra $500 (amount shorted on interest) for a total of $707. And state in the memo line �for principle only�

Do they (mortgage lender) HAVE TO apply the payments as stated on the checks?

What would be the possible legal or credit ramifications of this approach?

EA

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