I purchased a home in 2007 with a closing date of September. The bank did not withdraw any mortgage payments from my account. I did not contact them because several of my friends told me that it took the bank up to five months to process the paperwork for their mortgages.
Never once did I think I'd not have to pay the mortgage, so I kept the appropriate amount in reserve for when they figured it out (I did not change bank accounts or anything it was straight error on their part). They have contacted me recently and are demanding full payment. Since this is their error am I entitled to ask for options such as starting my first payment now or paying some of it (but not all) and start paying or will I have to catch up on all arrears?
You can ask this of your attorney. At closing you promised to make payments of a certain amount and at a certain time. The bank may have had a programming delay or your loan was temporarily misplaced, but your obligation still exists and you should have inquired as to where to send these payments, if those instructions were not included in your closing documents.
Don't confuse them not providing a payment book with the contract you signed with them. Your payments are owed whether they sent you a notice or not.
If it was their error, the best you could do for now would be to have them waive any late charges and interest that would not have otherwise been owed. This is likely to happen only if they were instructed to debit your account and the funds were there.
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You can ask this of your attorney. At closing you promised to make payments of a certain amount and at a certain time. The bank may have had a programming delay or your loan was temporarily misplaced, but your obligation still exists and you should have inquired as to where to send these payments, if those instructions were not included in your closing documents. 