Mortgage Payment

[mocton]

What is the name of your state (only U.S. law)? TX, I paid my mortgage this month with extra monies. instead of applying the extra monies to principle reduction they paid next months escrow and taxes, as a result very little went to principle reduction. I emailed them and they were quick to respond saying they were backing the monies out for the next months payment...Just didn't smell right.

 

[CSO286]

What is the name of your state (only U.S. law)? TX, I paid my mortgage this month with extra monies. instead of applying the extra monies to principle reduction they paid next months escrow and taxes, as a result very little went to principle reduction. I emailed them and they were quick to respond saying they were backing the monies out for the next months payment...Just didn't smell right.

Do you have a question?

 

[mocton]

What is the name of your state (only U.S. law)? TX, I paid my mortgage this month with extra monies. instead of applying the extra monies to principle reduction they paid next months escrow and taxes, as a result very little went to principle reduction. I emailed them and they were quick to respond saying they were backing the monies out for the next months payment...Just didn't smell right.

Are mortgage Co's allowed to do this, since all of my other extra monies in the past have always gone to principal redux.

 

[HUD-1]

Your Mortgage document will have a section entitled something like " Application of Payments or Proceeds" that will discuss specifically how payments will be applied. If they made an error, then give them a chance to fix it.