Consumer complaint received 2024-02-22
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: TOWNE MORTGAGE COMPANY (SC)

Towne Mortgage has failed once again to fix the payments they misapplied on my account. They replied to a complaint on XX/XX/XXXX describing how extra payments work, but failed to mention that the weeks they misapplied on XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX DOES NOT equate to the XXXX payment. I understand that weekly payments will reduce the principle and that paying weekly will result in an extra payment for the year, not understanding how weekly payments reduced your principal balance was not my complaint. Their mishandling and misapplying my payments 6 months into this loan getting my payment schedule off track is my complaint. 
In XXXX we had extra weeks in the month of XXXX, XXXX, XXXX and XXXX. In XX/XX/XXXX a total of 5 weekly payments were made, in XXXX there were 4 weekly payments made, in XXXX there were 4 weekly payments made BUT Towne Mortgage applied one of those payments to principle only, messing up the " schedule '' - BEFORE any reversals on the account took place. In XX/XX/XXXX weekly payments were made, in XX/XX/XXXX weekly payments were made, in XX/XX/XXXX weekly payments were made BUT Towne Mortgage took one and applied it to principle only! Again, messing up the payment schedule. In XXXX there were 4 weekly payments made ( there was a reversal but on the XXXX, it was paid and taken care of online ) - Up to that point, the payment schedule should have been on track but it wasn't due to Towne Mortgage error in applying my payments in XXXX and XXXX. XXXX would have been a week short due to a reversal on the XXXX, but what about the extra weeks in XXXX and XXXX? 
Those payments were not applied to principle, so I should still be on " schedule '' with my monthly payments. XXXX there were 4 weekly payments made, there was an extra week that I stopped thinking it wouldn't matter since it was an extra week in the month and should have went towards principal, it was then that my wife discovered how Towne Mortgage had misapplied payments. In 14 months we have had 3 weeks that were reversed and one was paid online - that leaves 2 weeks short but we had an extra week in XXXX and XXXX that was paid in and applied to the account not to principle so the reversals do not take us off schedule Town Mortgage misapplying payments does. They have also failed to provide in writing how they were going to apply the so called XXXX payment if they were not going to apply it according to the extra weeks we have in a year like most mortgage companies do. Out of courtesy and better judgment, I suggest they credit me the XXXX and XXXX like they did for the XXXX payment. Also concerning their comment about how the weekly deductions were " changed '' that was simply changing the amount that I set up to pay in towards principle. I have the printout showing how the weekly amounts were increased during the 14 months of this loan and how they received payments ( automatically deducted ) EVERY WEEK since we had this loan with the exception of the 2 that I knew they would mention in an effort to avoid fixing their mistake. The first time they took my money and misapplied it to principle was in XX/XX/XXXX - that is only 6 months into the loan- this is NOT the XXXX payment. Then in XXXX they took my payment and misapplied it to principle - this is the XXXX month into the loan - not the XXXX payment. Towne Mortgage had this account off schedule 6 months into this loan and I want it fixed. They have the money I sent, they need to apply it accordingly. Furthermore, even if you count the payments that was made weekly, the weeks they applied my payment to principle does not equal the XXXX payment. So the reversals and XXXX payment is no excuse. Again, 6 months into the loan they messed up my payment schedule and misapplied my payments. I will give them one more chance to resolve this before taking it to the next level.