Mortgage Paid? How Do I Know?
It would be nice to report that every mortgage payment is promptly received and correctly processed. However, it follows that in a country with some 45 million first mortgages that there are millions of opportunities to screw up and that sometimes loan payments made in good faith are not properly handled.
What can you do?
- If you pay by check, pay 10 days early.
- If the lender has a website, check the account balance each month about 10 days after the payment is due to assure your account has been credited. If not, contact the lender immediately.
- If you pay electronically with an automated payment check your account to assure that the payment was made. Protect yourself and always have an overdraft line-of-credit. This costs about $25 a year plus interest for any advances, but it’s a lot cheaper than late fees and negative credit items.
- If you paid electronically but not automatically, think of switching to an automated payment system. Be cautious however and ask what happens if you change accounts or prefer in the future not to pay electronically.
- If you want to be sure that a mortgage payment is credited to your account, send the check by certified mail with a return receipt requested.
Mortgage Paid
Late payments set off three problems.
First, you may be hit with a late fee.
Second, predatory lenders who engage in “loan-to-own” financing will be elated if you’re late. They will hit you with a late fee, perhaps raise your interest rate and possibly foreclose — even if you’re late by five minutes.
Third, your credit report can be dinged. However, credit reports only include payments which are at least 30 days late — thus the reason to check lender sites and your bank account 10 days after a payment is due.
If you’ve made your payment in a timely manner and for some reason it has not been quickly credited to your account, call the lender and complain. I’ve had lenders waive late fees by calling and pointing to my past payment history.
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