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ORIGINAL: BossyShoeBitch

What mortgage company was it?

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The company did not want to accept payments unless it was total amount due. I had him set up an escrow account to deposit these in until court. Before court he was able to get it to being only one payment behind but they still would not accept it. Prior to court I had him request a statement from the mortgage company, and I discovered they had calculated the escrow for him incorrectly. His escrow balance after payment of insurance and property taxes, was almost $3000. I contacted the mortgage company for him, but they gave me stall and run around. The court date finally came and we presented everything to the judge. My neighbor filed a counter suit. The judge was not happy with the mortgage company. With what my neighbor had been depositing each month in an escrow account as his house payment plus some, the surplus escrow the mortgage company had, and all the certified letters where my neighbor attempted to work things out, the judge ruled against the foreclosure, and found in favor of the counter suit. This meant all late fees were stripped from what was owed, and the judge allowed my neighbor to charge them interest on the escrow the mortgage company had been holding. Net result is he got $4000 (his escrow surplus, plus the late charges for 7 months refunded, plus interest on the surplus) which he had applied to the next three house payments.

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ORIGINAL: OrionTheWolf
The judge had a couple of choice words for the attorney who offered the excuse that his office was so busy with these kinds of cases, the Judge came back without missing a beat "No wonder if this is how you handle them all."

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ORIGINAL: OrionTheWolf

Here is the update that I promised. My neighbor was being foreclosed on. The company did not want to accept payments unless it was total amount due. I had him set up an escrow account to deposit these in until court. Before court he was able to get it to being only one payment behind but they still would not accept it. Prior to court I had him request a statement from the mortgage company, and I discovered they had calculated the escrow for him incorrectly. His escrow balance after payment of insurance and property taxes, was almost $3000. I contacted the mortgage company for him, but they gave me stall and run around. The court date finally came and we presented everything to the judge. My neighbor filed a counter suit. The judge was not happy with the mortgage company. With what my neighbor had been depositing each month in an escrow account as his house payment plus some, the surplus escrow the mortgage company had, and all the certified letters where my neighbor attempted to work things out, the judge ruled against the foreclosure, and found in favor of the counter suit. This meant all late fees were stripped from what was owed, and the judge allowed my neighbor to charge them interest on the escrow the mortgage company had been holding. Net result is he got $4000 (his escrow surplus, plus the late charges for 7 months refunded, plus interest on the surplus) which he had applied to the next three house payments. So everything is done, and he has paid three months ahead on his house payment. He paid in advance because he still does not have steady work.

Mortgage companies really suck, but at least the judiciary here saw what was going on. Now to look into a complain to the FTC about this.

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ORIGINAL: OrionTheWolf

There are a couple of groups that the situation is being listed with. The angle I am looking at is the handling of the escow, and how the FTC rules and regulations may apply. It will take a while to look through all of those R & R's though. I also listed my neighbors information on a site that is proposing a class action lawsuit against Litton Loan Services.

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ORIGINAL: Musicmystery

Orion has already explained this:

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ORIGINAL: Loki45

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ORIGINAL: Musicmystery

Orion has already explained this:

Evidently not well enough, hence my post. You see, there was no explanation of 'why' they only wanted the full amount. In experiences I have witnessed, the only thing that would make a company do that is significant delinquency -- which of course leads back to my question. If he had the money for the payments, why would they 'all of a sudden' want the full amount only?