Outrageous Mortgage “Servicing”
We have had our most recent mortgage with PHH, thanks to AdventureMan’s hard work, and this morning, my husband is on the phone with their bureaucratic, less-than-helpful customer service agent.
I hate them. I know it is a sin. I hate these practices.
AdventureMan sent them a check with more than enough to pay off the mortgage. When we checked the status online, we still owed a small amount. Then we saw that although the check was clearly marked “principal only,” PHH had applied part of it to another monthly payment, and then the rest to the principal. (Sleaze bag practice to prolong payment periods.)
“You cannot pay off the loan with a personal check,” the customer service representative says.
“You sent the check to the wrong address; that address is for principal only,” she says, and you can tell she is reading off a script.
AdventureMan asks to speak to her supervisor. She says that is not possible.
This is just an outrage. Every day they can postpone the final payment, they get interest from us. When we have sent more than enough money to cover the principal and all the escrow payments, we get this brick wall.
Personal check? They’ve already cashed the personal check! They have the money! This is outrageous!
We had to deal with the company once before, with another mortgage. Their practices are disgusting. God willing, we will never have to deal with them again.
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This is truly outrageous, not accepting personal checks!! What about cash in terms of coins, are they fine with that!!!
Inshallah you will never have to deal with them or any other mortgaging agency again.
Here is what is laughable – they had already cashed the check. They already had the money. We had specifically stated the money was to be applied agains the principal only. They chose to misunderstand, and then come up with this rule, which probably could have a reason, but not when you already have the money. Then it’s just greed.
Would the local better business bureau be of any use in cases like yours .
No, it’s not a local company, it is a national company. And you are right; I need to complain to someone; this should not happen.
ugh. I am so sorry. My blood is boiling just reading your story. How frustrating!
You’re not going to believe this. It gets worse. We had a lot of money in escrow; the script-reader said it would take a while to pay off all the insurance things due, and then they would send us the remainder. Thank GOD, AdventureMan called today, to discover the insurance has not been paid, they decided that it was our responsibility. So when did they think they were going to tell us, or do we find out when our insurance company notifies us that our insurance has been cancelled due to non-payment. Oh GRRRRRR. We’ve been told to write a letter about it – and we are going to. GRRRRRRR.
I really hate dealing with any for-profit banking institution. I had bad problems a few years ago with a major company when it sold our mortgage to another company that had different payment rules. Once I had it straightened out (which took months) I refinanced with a credit union and have avoided big banking ever since. Won’t use their credit cards or anything–all with credit unions.
I like your solution. 🙂 I don’t plan to be buying any more houses, but you never know. I don’t mind people making a buck, but it is disrespectful to do it dishonestly.