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CitiMortgage - Aggressive Collection

CitiMortgage • Escrow problems • Duplicate credits • Misapplied funds • Due date

Richard of Milpitas CA (9/29/03):
I received a very aggressive late notice on Sept 10th from Citimortgage regarding my first mortgage payment. I checked my account online, and the payment was received on Sept 11th. I tried to access my account on Sept 28th, and have been "locked out" of my account due to "the status of my account". I have always paid my mortgage before the late charge date (15th of each month)with other mortgage companies and have never received a notice threatening default or credit collection before.

Does Citimortgage tend to aggressively enforce the 1st of month due date? The terms of my mortgage contract does say that the mortgage is in default if payment is received after the 1st (although the same terms appeared on my contract with previous companies). Can Citimortgage demand immediate payment of the loan if I continue to make my mortgage payment after the 1st of the month? Would I have legal recourse if they did demand that the loan be paid in full if they did not consistently enforce this clause with other individuals?

I am concerned that Citimortgage may demand that the loan be paid in full if I continue to make payments after the 1st of the month (but still before the late payment due date, the 15th of the month).

This is a very common but very dangerous misunderstanding. Mortgage payments are legally due on the due date. The fact that there is a 15-day grace period before the late fee applies is inconsequential. Consumers who routinely pay their mortage late literally risk losing their homes. Although many companies allow this, it is a terrible habit to get into. Richard should make arrangements to pay his mortage by the due date.

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