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Home >> Lending >> Home Mortgage
Trouble with Mortgage After Bank Sold Loan
I bought my home a little more than two years ago. It cost $128,000 and I put $10,000 cash down on it. I have been paying a mortgage payment of $1,047.66 every month over the last two years. I have made all of my payments in full and on time.
My old mortgage company just sold my loan to another mortgage company. I'm trying to sell my house because of job relocation and I called the new mortgage company to find out my balance. They told me that it is $118,231.50.
I understand that some of each mortgage payment goes to things like taxes and interest, but why should I owe more after two plus years of making mortgage payments than I did when I first bought the home? Has someone really messed up my case? How should I go about getting this matter resolved?
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 If they are escrowing taxes and or insurance, you should be receiving an annual escrow statement. A short year statement should also have been done when the loan was sold, if this wasn't timed with your annual statement. These tell you how much went to taxes and or insurance. Your tax statements will have told you how much of your payment total for each year was to interest.
You may have also received an amortization statement when you made your loan. If not, you can request one now, but there may be a fee for this. An amortization is a schedule breaking out each payment, how much was going to principal and how much was going to interest. That should be pretty close to what has happened with your account. (There are also Excel programs easily available to help you calculate the principal and interest breakdowns.)
You have several alternatives here to verify your history. While it isn't likely the servicer made an error, it is possible, and in any case, they should prefer that you understand your mortgage payments. If you consider that each month you pay interest on the principal (their money) that you have borrowed, your first month's interest is the most you'd pay. The second month is the second most, and so on, so you will pay a lot more interest in the first years than at any other time.
Published on BankingQuestions.com 9/14/07
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