The Federal Tax Credits Blog

Question: Can I sue my mortgage company?

My mortgage company increased my monthly payment the past 6 months due to taxes and needing more money in my escrow account…I then received a letter from a law firm stating a lien was placed on my home for non payment of taxes. The mortgage company eventually admitted they overlooked the payment and would take care of it immediately. After that nightmare, I found out they had reported a late payment to my credit bureau, tanking my score. I called in advance of missing a payment and was told I could have an extended grace period. When I called about the credit report, they said they do not grant grace periods. I’m getting the run around, my credit has been harmed and my taxes weren’t even paid! Should I get a lawyer???

Answer: I don’t think it would help a great deal to get a lawyer although they did seem to screw up some. Firstly make all your payments on time so you do not have to hope that they grant you an extended grace period. Although they said they would, your payment sounds like it was in fact later than it should have been so your credit report is not wrong, it was just reported correctly when you thought a bank employee would do what they said and file your payment in such a way as to hide this late payment from the credit bureau.

Secondly instruct your mortgage company to send you a check of the money you owe on property taxes. This check will be written out to you as well as your town or city where you pay property taxes and you can handle them yourself. This way you can better manage your own income tax filings as well as be on top of knowing when and if your property taxes have been paid before it would get to sucha level that they would place a lien on your residence.

Once you take these steps yours problems should be over and if not go out and get a new mortgage from another institution that better suits your needs.

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