Can mortgage service provider use the money I paid under late payment fees? 4 Answers as of January 07, 2014

I became behind on payments in the beginning of 2013. I gave the mortgage service provider 3 payments to come current. That's what they told me to pay. One of the payments for a month's mortgage was put towards fees and late payments. So when I thought I was current I was really a month behind again. I have a Home Affordable Modification Program already. Can they put my money where they want under Hamp mod?

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Janke Legal Consulting | Bruce C. Janke
The HAMP program doesn't have anything to do with what the lender can use your payments for. That is entirely controlled by the terms of the promissory note and deed of trust. Generally, these contracts provide that payments will first be applied to outstanding late fees and then to regular payments. Don't ever believe what an employee of your lender tells you unless they put it in writing.
Answer Applies to: California
Replied: 1/7/2014
Stephens Gourley & Bywater | David A. Stephens
They have to put the money where the note requires unless there is a different agreement. Most promissory notes require the payment of late fees and interest first.
Answer Applies to: Nevada
Replied: 1/7/2014
Law Offices of Linda Rose Fessler | Linda Fessler
No they are supposed to apply it to the mortgage first.
Answer Applies to: California
Replied: 1/7/2014
The Law Office of Darren Aronow, PC
The Law Office of Darren Aronow, PC | Darren Aronow
Money goes first to late payments, escrows etc and then to mortgage payment.
Answer Applies to: New York
Replied: 1/7/2014
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