Trouble during payment process

Posted on Posted in Complaints, Mortgage

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In XX/XX/XXXX we got a Home Mortgage Equity LOAN, not equity line, originating with XXXX XXXX. At that time and with our poor credit we had to go with a high fixed rate of 12.25 APR interest. We signed up for a 15 year loan that is supposed to be completed in XX/XX/XXXX. After getting the loan we put our heads down and just kept it paid. My wife and I have been paying this loan for 11 1/2 years. Recently XXXX sold (? ) our loan to Select Portfolio Servicing ( SPS ). Today I received the first statement by mail from SPS and was very confused when the figures were computed. In XX/XX/XXXX we took out a 15 year Home Equity Mortgage Loan of {$25000.00} ( XXXX XXXX XXXX dollar ) with 12.25 % APR interest rate, and as of today we owe, according to SPS, {$24000.00}!! We have n’t missed any payments and have paid on time. According to the statement, the payment due is {$260.00} a month with {$26.00} going to Principal and {$230.00} STILL going to Interest. I called them today to find out about getting the correct amount owed where it should be and the lady I spoke to insisted that the numbers were correct. So after paying {$260.00} a month for 11 1/2 years on a {$25000.00} ( XXXX XXXX XXXX Dollar Loan ), we still owe ( according to SPS ) {$24000.00}. According to these numbers we have paid approximately {$33000.00} in interest, yet only {$3600.00} has gone toward principle on a {$25000.00} loan at 12.25 % for 11 1/2 years. When I asked how this loan could possibly be paid off by XX/XX/XXXX, she stated that ” there will be a balloon payment at that time ”. I then asked the amount of the balloon payment and she said ” It ‘s not on here. ” referring to our paperwork By my calculations our ” balloon ” payment will be {$12000.00} IF every monthly payment from this point is applied to the principle, which it wo n’t. The other issue I ‘ve discovered is that in XX/XX/XXXX, XXXX had our loan balance amount at {$23000.00} outstanding, but somehow SPS has increased that amount to {$24000.00}. So they are charging us an additional {$610.00} for a ” Deferred Principle ”. I asked that we be mailed the paperwork SPS has for our loan and they claim they will send it in 5-7 business days. This must get sorted out or e will never be free of a loan that is supposed to mature in XX/XX/XXXX.

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