Legal Question in Consumer Law in Michigan

Bi-montly mortgage payments

I currently pay my mortgage twice a month in an amount equal to my

monthly payment amount. My mortgage company now tells me they

don't accept partial payments. They hold my money until the rest comes

in and this method causes their computers to mark my payments as late

as it takes their system time to combine the payments. They are now

calling me and telling me I am going to be delinquent and insisting I pay

the amount in full once a month. Is it legal for them to hold my money in

escrow? Is it legal for them to refuse or hold partial payments even when

the monthy total equals the amount I owe them contractually? Am I

responsible for the fact that their system does not like twice montly

payments?


Asked on 6/23/04, 9:58 am

1 Answer from Attorneys
Regina Mullen Legal Data Services, PLC

Re: Bi-montly mortgage payments

This is a matter for negotiation. If in fact all of your payments are actually MADE in a timely fashion, they have no right to charge you as having paid late.

Even if they don't account for it until later, there should be no late penalty applied to your account.

Instead of fighting them about this, why not pay in advance into a bank account at their bank which can automatically debit on time. That way, you can continue your partial payments and they get their money on time. You're only a 1/2 payment behind, so if you can get 1/2 payment ahead, you never have to worry about it.

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Answered on 6/23/04, 8:44 pm


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