Mortgagesgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
I made a decision not to mail any checks after Dec. 15th, 1999 There was a good reason for this. My mortgage company kept sending me notices that my payment was late and charged me a late fee. If there are any problems my accounts are empty. CASH from now on with receipts!!!!!
This raised my dandruff because I send it out the first week of every month and I have till the sixteenth before its late. I then checked one of the cancelled checks and found they got the money on the 25th of the month that was in October. I had mailed it on the 5th. When I called them on it they said they just had a major merge. That is not my problem my check was on time. They refused to refund the charge.
I then paid in advance three months of my mortgage principle and interest only for my taxes and insurance was paid up. They said I couldn't do that. So in writing I asked for a non excrow account so I could pay my insurance in cash and get a receipt and pay my taxes not due till October 2000 and get a receipt.
Took me 30 days to do this but it worked. Now I dont have a payment due till April and the escrow accout is killed. Do you have any idea how much money is made by mortgage companies and banks holding on to your money untill its due? Now add up all the other people that have them too. Staggering.
-- Susan Barrett (firstname.lastname@example.org), December 10, 1999
We always received interest from our bank when they held money in escrow. It wasn't as much as we could have made, say, in the stock market, but at least it was something. If they weren't paying you interest on your escrow, I'd find another bank.
-- (Polly@troll.com), December 10, 1999.
You've got this backwards: The mortgage payment is usually due the first of the month. You probably never get your check there on time, because most people look at the day a late payment fee is charged as the "real" due day. I used to do that too ... before my mortgage was paid off.
Congratulations on getting rid of that escrow account! But don't forget to put some money aside every month for your taxes and insurance. I recommend people keep enough money in reserve at all times to pay real estate taxes and home insurance for the next 12 months. It's also wise to save money every month that will eventually be used for a new roof, furnace, water heater, etc. You'll eventually need all these things -- wouldn't it be nice if the money was available when needed, after being saved painlessly one month at a time over many years? I actually studied finance many decades ago - this is all I can remember!
-- Richard Greene (Rgreene2@ford.com), December 10, 1999.
Oh forgot to say this mortgage is 23 years old and funny only the last two months have I had late notices when they were mailed the same for all these years. My escrow was attached to the mortgage company and I didnt learn till just recently I could suspend it.
-- Susan Barrett (email@example.com), December 11, 1999.
Re: what you said about how you will be paying your bills for the rest of the year.
Hubby gets paid twice a month. His next one is this Wed. He will deposit it, then we will pay some bills due this month with it. I get paid the 17th for the entire month (direct deposit). Will be withdrawing the entire amount around the 20-22nd. Holding onto it. I normally pay the mortgage payment for the next month out of that check (the one due Jan. 1). Will wait to see what happens to pay it. If everything still looks kosher enough by Jan 15 (the cut off date for it) I will mail it. If things are looking pretty crappy (like the mailman hasn't even been SEEN in days, no power, etc) then I certainly will NOT be mailing a check!
Hubby gets paid again on the 30th. Wonder if he will be able to cash that one. They will probably tell him it will take a couple of days to access the money.....hmmmmm.
-- preparing (firstname.lastname@example.org), December 12, 1999.