Advice Wanted,Trusting Bank?
Well, here's my situtation. Sorry this is so long but I wanted to give you all the facts. I took out a loan 7.5 yrs ago, for 35,000 at 8.71% for 15 yrs. With no points or balloon payment at the end. My payment is 292.80 according to the loan agreement I signed and the payment book they have sent me.
On the 80th payment I called the bank to check the balance still owed and I was told 32,000 I asked how that could be because 100 payments at 292.80 equals 29,280. They told me it was due to late payments on the loan. Now on the 90th payment they have told me the balance is 29,900. So again I asked how can this be? Again they said due to the late payments on the loan. So I asked them to figure what a payment would be with the above numbers and they said it would be 348.98 which is 56.18 higher than the original loan agreement.
So I ask you who is screwed on this, is it the bank since they miscalculated, or us because when the 180th payment is made we are still going to owe a huge balance. I have upheld my end of the deal by making the payments at the amount they determined on the original agreement.
I'm not much of a person to run to a lawyer, but my wife and uncle both say I should go just to see what we can do legally and if they can make us pay a balloon payment at the end when it wasn't something we agreed to in the beginning.
Has anyone ever had this problem or any words of wisdom.
On the 80th payment I called the bank to check the balance still owed and I was told 32,000 I asked how that could be because 100 payments at 292.80 equals 29,280. They told me it was due to late payments on the loan. Now on the 90th payment they have told me the balance is 29,900. So again I asked how can this be? Again they said due to the late payments on the loan. So I asked them to figure what a payment would be with the above numbers and they said it would be 348.98 which is 56.18 higher than the original loan agreement.
So I ask you who is screwed on this, is it the bank since they miscalculated, or us because when the 180th payment is made we are still going to owe a huge balance. I have upheld my end of the deal by making the payments at the amount they determined on the original agreement.
I'm not much of a person to run to a lawyer, but my wife and uncle both say I should go just to see what we can do legally and if they can make us pay a balloon payment at the end when it wasn't something we agreed to in the beginning.
Has anyone ever had this problem or any words of wisdom.
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well from the looks of things you should have been making payments of $348.98 from the beginning of the loan. Your total amount owed over the period of the loan would be 27816.53 for interest and 35,000 for the principal. For a grand total of 62816.53. So the numbers they are showing on your balance are probably correct. But they have screwed up on their end.
What you need to do is look at the promisary note. On here there should be what your principal is, what your interest rate is, what your monthly payments should be. If one of these are wrong, go to the bank and bitch up a storm.0 -
Well the numbers dont add up. by paying 293. per mo. at the end of 71/2 years you would have paid off less then $3500.00.
Are they saying that you have been underpaying by 60.00 a month for 71/2 years, looks like funny math to me.
I think the outlay of $75.00 for a laywer would be a better deal then you made 71/2 years ago. I cannot believe that they would let you be that far behind without some serios letters being sent.
I'd say you should have had a laywer back then but its too late for that amigo.0 -
No not late every month just occasionally paid after the due date. But always made the late payment amount as shown on the coupon. 0 -
YOU NEED TO TALK TO A LAWYER. He will explain this better. I don't know too much about this, but I know that it is common for banks to apply most of the early payments to the interest instead of the principal. They figure out how much the total interest of the loan will be in the begining, and then get that paid before the principal is paid down. So it's not unusual to be halfway through the payment period and still owe most of the balance. This is standard procedure with a morgage. And they are legally allowed to charge penalties if you are late with your payments, and those penalties would be also paid before the principal is paid down. So you need to realize that with interest you are paying them somewere around $60,000 or $70,000 dollars for that $35,000 loan, plus whatever late fees you have.[xx(] accumulated. 0 -
quote:Originally posted by Azhunter
So you need to realize that with interest you are paying them somewere around $60,000 or $70,000 dollars for that $35,000 loan
No it should be $27816.530 -
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Not having seen your paper and reviewed it, I can't tell you squat.
However, it seems to me that you need to see an attorney. Now here's the thing about attorneys:
Seventy-five dollars ain't gonna buy you diddly when it comes to attorneys. You need to find not an attorney, but a good-sized legal practice that plays with the big dogs. A consultation regarding this will probably take one or two hours at from $250.00 to $350.00 per hour.
You can streamline things and keep the meeting going forward by doing and not doing a couple things:
--The attorney is not your mom. Telling him your sob story is on the clock and you would be paying him to act as a crying towel. Stick to the facts.
--Get all your paperwork organized chronologically, separated by year and do not throw anything away.
--Try to figure this out by yourself on paper at home before you talk to anyone.
--If you take all your paper to the bank, make sure it is copies. Don't take your originals to the bank. Stuff can mysteriously disappear that way. KEEP YOUR ORIGINALS. Don't give your lawyer originals, either. Make about four copies of everything and work from copies, not your originals. You'll also want to include copies of your checks that you wrote for the loan payments. Store all original paperwork safely at home. Also, if you can help it, don't let your lawyer make copies for you, because the law firm will charge you anywhere from $1.00 to $2.00 per page.
Sorry this happened to you.......if it's as bad as it sounds, you may wind up seeking damages from the bank.0 -
quote:Originally posted by shoff14
quote:Originally posted by Azhunter
So you need to realize that with interest you are paying them somewere around $60,000 or $70,000 dollars for that $35,000 loan
No it should be $27816.53
You are no doubt correct, as I stated I don't know much about this. But I meant that the total paid would be between those numbers, not that he would be paying that much in interest alone, I'm sorry that I was'nt clear.[B)]0 -
I wrote a long post on how to get the info you need without having to spend a lot of money and then I came up with a better idea.
Type into your search box LOAN CALCULATOR you should come up with one that will show you how princepal of your loan is paid monthly.0 -
My guess would be that the promissory note is correct, then booklet that was sent was incorrect. The booklet they send is just for reference and has no added value. Why they would have never sent something to him saying that he was paying the wrong amount is crazy. 0
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