Frank, Several months ago I refinanced by office building, which is actually just a single family home converted into a Insurance agency.
The company that we refied with was a Bayview Loan Servicing, which if I would have known how difficult they were to deal with I would have never used them.
My question to you is whether or not it is legal for them to only allow me a 5 day grace period before they attach an exorbitant late fee. My home, old office mortgage & even an investment property I own, give me the customary 15 days, this 5 day stuff is extremely difficult especially when our commission monies do not come even come in until the 5-10th of the month.
I have tried to deal with them but they are extremely nasty & truly could care less. Actually it looks to me as if they are trying to make people late so that they can charge the extra monies.
Any help would be greatly appreciated.
Sorry, but I don't know. But maybe somebody will find this post and share their info. So post a "hi" and subscribe to the comment feed (I think this blog lets you do that).
I do know that the lending world is highly regulated, so I would be surprised if they were able to get away with shorter grace periods, if it wasn't legal. As it is due the 1st, I don't know if the law can say "give people more time."
People love going to BankRate.com or LendingTree.com and getting the absolute cutthroat lowest price, without caring about the fineprint. So yeah, they probably made $500 less on you up front, with the hope that X% of their clients will pay $200 in late fees every year.
I wish I could point you in the right direction, but unless a lawyer knows off the top of their head, it is going to cost you a few hundred to find out.
I will also direct a few lenders to chime in.
And lastly, if you DO find that they aren't legally allowed to do 5 days, you might be able to get your money back for past penalties.
- Written by Frank Borges LL0SA