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Which Mortgage Company Owes Us The Interest Already Collected?
The original mortgage was granted through one loan company but over the years, it has been sold off to other companies. The note is now held by a third mortgage company. In the beginning much of the monthly payment went towards the interest but now most of it is going towards the principle. The mortgage will be paid off in 6 months which is earlier than negotiated. Because all the interest was paid in the beginning, we have essentially overpaid the interest and should be getting a credit. So who owes us the credit? Is it the mortgage company that collected the payments initially or is it the current mortgage company because they have assumed all responsibility for the note when they purchased it from the other company? Can you please also send me a link to some documentation that will support your answer? Thanks!
I think there may be some confusion about where the "credit" is coming from. The mortgage for the full term (as negotiated) was paid upfront but we are paying it off early so we pre-paid more interest than what we actually had to owe.
Sorry I meant to say the interest for the negotiated term of the mortgage was paid upfront so we prepaid more interest than we should have to owe.
Let me just add something- there is no question about whether or not there is a credit. The bank has already said there is. We are trying to establish who actually owes it- Company 1, 2 or 3.
If you don't understand mortgages, please don't answer. I am looking for serious answers.
5 Answers
- wizjpLv 71 decade agoFavorite Answer
No link. THE last owner of the note is responsble. They "bought" the note and the outstanding obligation no matter if you overpaid or skip out and default; they are equally in possession and responsible.
It's STILL the lender who currently holds the note under the same terms and conditions as the original lender.
- Craig TLv 61 decade ago
Just curious but where do you have the idea that you have "essentially overpaid the interest and should be getting a credit"?
What does "The mortgage for the full term (as negotiated) was paid upfront"? If the mortgage was paid upfront, there would be no mortgage
The interest being paid "upfront" makes no sense either, the interest on a $100,000 mortgage at 5% over 30 years is over $90,000, if you had that kind of money then you wouldn't have needed a mortgage
- ?Lv 44 years ago
blunders take place. maximum identify agencies continuously upload extra advantageous pastime so as that this would not take place. Then the non-public loan company refunds with any money in an escrow account. First does the identify company have a payoff letter via Nov third. My wager is it became a mistake by ability of identify company and the financial organization is interior of its rights to no longer settle for without the superb quantity. we are speaking approximately 3 days well worth of pastime. Pay the version and merely be happy which you had a ultimate in any such complicated real property industry. extra innovations: i could call Citibank and ask in the previous you write the verify. in case you have a FHA mortgage you extra often than not ought to pay all the pastime interior the month which you close up. i think that they are going to artwork with you and doubtless you will no longer ought to pay something.
- Anonymous1 decade ago
you never get credit back for paying a mortgage early. You only save on the interest you would have paid but now don't have to because you have paid off the loan.
If however, there was an overpayment then only the company that holds the mortgage when it is paid off is responsible.
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- LandlordLv 71 decade ago
You misunderstood something somewhere along the line. There is no credit to be received. Your "credit" is that you stop owing payments, which is earlier then agreed. You should be past any pre-payment penalty, but you will not be receiving any funds.
