Quote:
Originally Posted by boykinmama
The terms of your mortgage are spelled out in the mortgage agreement. In that document you will find whether there is any provision to increase the interest rate if you are not paying as agreed. If that language is in there, you have no grounds to complain that they increased your rate. If it is NOT in there, you can take this one to court. At this point, it is a small claims court issue...cost under $100. The best final solution is to sell the place to your son if there are no better offers.
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1. Mortgage companies do not adjust their fixed rates to reflect late payments from the mortgagee. While credit card companies can raise the interest rate to reflect poor payment history, fixed rate mortgages do not do this. Late fees? Sure. Change a fixed rate mortgage? nope.
2. ARMS change rates.
3. How did you did you arrive at the $100 amount?
4. Have you considered the logistics of taking a possibly out of state lender to small claims court? The paper work would have to be filed in their jurisdiction---and if she doesn't have money to pay her bills, I suspect she doesn't have traveling money to bring a cause of action in another state. Also, the logistics of who to sue is interesting. Who is the "bank"?the teller? the president? the security guard? Banking issues aren't practical for small claims, unless the president of the bank happened to rear end you on the way out of the drive thru ATM. Then, go for small claims.
Obviously, the issue of a bank or mortgage holder charging unauthorized fees isn't a small claims issue.
$100 wouldn't begin to cover even one month's increase in payments.
Clearly, the 'best' thing to do is not abdicate her property. But, rather ascertain if the bank is, indeed, doing something illegal. If they are not, she has the option of selling, foreclosure, etc. But to tell her the "best final " thing to do is sell the property to her son is just speculation. Why not attempt to have resolution with the bank be a "best final" solution?