Legal Question in Real Estate Law in Illinois
Lending firm applying all monthly payment to interest
For the past year I have been making double payment as monthly mortgage payments. But for the past 6 mos. the lending firm has been applying all payments to interest. According to lending contract there is no prepayment penalties. When I enquired about this to the lending firm the response was I missed 2 mos. for mortgage payments. None of the payment has been applied to my principal.
1 Answer from Attorneys
Re: Lending firm applying all monthly payment to interest
I would need to see an analysis of your account, but if you paid more than your full payment, that additional money should be applied to principal. However, you are still obligated to make the next full payment. If you in fact did miss two payments, then you would have to make up those payments as well as late fees, so the additional money you paid would go to cover that first.
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