Consumer complaint received 2019-04-13
Company: Dovenmuehle Mortgage, Inc.
State: NH
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
My mortgage company has recently placed me on the equivalent of a two edged sword in regards to the interest I am paying on my mortgage. It seems no matter what I do to reverse this trend matters are getting worse.

I have pre-paid all due payments including all mortgage interest pre-charged and all escrow payments due for the entire year of XX/XX/XXXX. It has been my habit, my entire adult life to pay ahead on every loan I have ever had. Yet, I have never had a company handle my payments ahead of schedule in this manner..

What they have been doing is pre-charging my payments the interest that would have been due if I had kept to the normal payment due schedule of the loan contract. In short, what this creates is a situation where I am being pre-charged interest on money that I no longer owe.

For example : On XX/XX/XXXX in regards to my payment due XX/XX/XXXX. I was pre-charged {$87.00} interest on a projected outstanding principal balance of {$16000.00}. My contract has No prepayment penalty with an interest rate of 6.4 %. My current outstanding principal balance as of XX/XX/XXXX is {$9700.00}. I was pre-charged interest on {$6500.00} that I do not owe.

My next scheduled payment was not due until XX/XX/XXXX. In my attempt to stop the over charging of interest I sent in a payment in early XX/XX/XXXX of this year will documentation clearly marked requesting a principal only posting and clearly showing that my next regular payment due was to remain XX/XX/XXXX. This payment was posted on XX/XX/XXXX.

My request to have the entire payment of {$350.00} posted towards my principal balance was ignored and {$53.00} interest and {$53.00} was posted toward next years escrow. Therefore only {$240.00} was posted toward my principal balance. I was pre-charged interest on a projected outstanding principal balance of {$9900.00} for XX/XX/XXXX. My incorrect principal balance of {$9700.00} ( they are reporting now ) is already {$240.00} less than the amount I was pre-charged interest on.

The double edge sword is ; after I make my next 7 monthly payments of $ XXXX/m during XX/XX/XXXX through XX/XX/XXXX of this year all with requests for principal only payments and keeping my next scheduled payment due XX/XX/XXXX, my projected principal balance will be aprx. {$7200.00}. Once again I will have been pre-charged interest on {$2600.00} I will not owe!

My contacts with mortgage company have been for the most part ignored. There were also irregularities in the way they posted my payment in XX/XX/XXXX. After the payment they received and posted on XX/XX/XXXX they stopped sending me statements. Not until I called early XX/XX/XXXX voicing my concerns over not receiving a receipt for my payment in XX/XX/XXXX I had no statement sent to me with a coupon for my next payment due in nearly 6 weeks. Without notifying me and without my request the erroneously posted my entire XX/XX/XXXX payment to principal pulling no interest and no escrow for that regularly scheduled payment. This action they took made it nearly impossible for me to accurately account for interest I had been overcharged for XX/XX/XXXX. I ended up going almost 66 days with no payment posted which amplified my compounded interested due.

Other irregularities include and are not limited to disappearing interest paid in there reporting documents. On my XX/XX/XXXX mortgage statement my year to date interest paid was reported as being {$2000.00}. Yet, on the XXXX for XX/XX/XXXX sent to the IRS my mortgage interest paid was reported as being {$1500.00}. On my XX/XX/XXXX statement my ytd interest paid was reported as being {$94.00}. What happened to {$530.00} of interest collected? My attempts to have current year to dated interest paid as of XX/XX/XXXX to include and reflect the missing {$530.00} have been ignored. I have other ongoing issues with this mortgage co which they obviously do not wish to resolve. I have supporting documents for every item I have presented. They are available upon request.

All other loans I have ever had, I paid ahead. My lender would charge me the interest I had accrued since my last payment. I HAVE NEVER BEEN PRE-CHARGED INTEREST LIKE THIS BEFORE! It opens the door for obvious problems and give license to steal from me. I am poor. This hurts.

Company response to consumer: Closed with explanation