Which Mortgage Company Owes Us The Interest Already Collected?

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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.

My husband and I acquired a loan through a mortgage company; I’ll call this loan company ‘A’. We sent our first mortgage payment to this company in March, and then we received a letter stating that our loan had been sold, and that all further payments would be due to loan company ‘B’, starting as of April 1st.

We received our payment coupon from loan company ‘B’ the next week, stating that our first payment was due May 1st. We made this payment to company ‘B’.

We then received a letter from loan company ‘A’ stating that they were going to foreclose on our loan.

Company ‘A’ had forwarded our first check we sent to them to company ‘B’ without notifying us.

There is no way we can afford to pay a double payment one to both companies, for the payment they didn’t accept and forwarded to company ‘B’ back in March.

Can they do this?

Our loan is now with loan company ‘B’.

  1. Reply
    January 24, 2011 at 4:43 pm

    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.

  2. Reply
    January 24, 2011 at 4:44 pm

    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.

  3. Reply
    Craig T
    January 24, 2011 at 4:45 pm

    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

  4. Reply
    January 24, 2011 at 5:42 pm

    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.

  5. Reply
    January 24, 2011 at 5:54 pm

    From what I gather, your April payment was unwittingly forwarded to Company B and applied to your balance there. Meanwhile, Company A believes that it is due the April payment. Sounds like a bookkeeping snafu. Call both lenders and explain what occurred here. Chances are good that they will handle the situation internally with a monetary transfer.

  6. Reply
    January 24, 2011 at 6:16 pm

    I had a similar situation, but my loan was sold 3 times in 3 months. B and C had no record of the payment to company A.

    I finally ended up getting the supervisors from all three companies on a conference call and had them notate the file and start working together to track the money down.

    It took 3 months to resolve! BUT, company C removed the late payment report on my credit within 24 hours of it appearing and it all worked out in the end.

    You need to get both of them on the phone NOW with your payment information.

    An no, if they sold the loan, they transferred their foreclosure rights…

    It does sound like you missed a loan payment though. If you paid company A in March and company B in May, who did you pay in April?

    Stay on them all!

    Good luck!

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