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’.