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Can I sue my mortgage company?

Cedar Park, TX |
Filed under: Debt Mortgage debt

My mortgage payments were lowered by $90 last year, effective June 1st. When I changed my automatic bank payments, I made a mistake and started the lower payment in May. The mortgage company then didn't apply that payment to my mortgage and put it in a suspend account. When I made a payment in June, they applied it to May and so forth until I found out about in December when I tried to refinance. They also applied the money that was in the suspend account to the principal which made me 1 payment short on my mortgage. They finally reversed that payment and made my account current but they still want me to pay late fees and because my account now shows late payments, I was denied refinancing. I was never late, they just didn't apply my payments to my mortgage.

Attorney Answers 2


  1. It is possible, but it would need to be worth the damage caused by the mortgage company. I would assume the mortgage company must have reported it to the credit bureaus, which allowed the new mortgage company to believe you were delinquent on your mortgage payments.

    I would ask the mortgage company to (i) fix your credit report; and (ii) write a letter of explanation to the new mortgage company and see whether it helps in the refinancing effort.

    If it does not, then it couldn't hurt requesting some payment of damages, or for them to refinance you under the same terms. However, I doubt the mortgage company will readily assist you. At that time, it wouldn't hurt to contact an attorney.

    The above statements are provided as general information and not intended as legal advice. Each matter has its own set of unique circumstances that cannot be adequately addressed without consultation. You are strongly advised to hire an attorney licensed to practice law in your state to represent you.


  2. It is possible, but it would need to be worth the damage caused by the mortgage company. I would assume the mortgage company must have reported it to the credit bureaus, which allowed the new mortgage company to believe you were delinquent on your mortgage payments.

    I would ask the mortgage company to (i) fix your credit report; and (ii) write a letter of explanation to the new mortgage company and see whether it helps in the refinancing effort.

    If it does not, then it couldn't hurt requesting some payment of damages, or for them to refinance you under the same terms. However, I doubt the mortgage company will readily assist you. At that time, it wouldn't hurt to contact an attorney.

    The above statements are provided as general information and not intended as legal advice. Each matter has its own set of unique circumstances that cannot be adequately addressed without consultation. You are strongly advised to hire an attorney licensed to practice law in your state to represent you.

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