     Chad Adams (Dnvrkid) | Monday, February 26, 2001 - 05:00 pm 
one year ago while I still had some marks on my creidit reports I purchases a piece of real estate. I have made payments on time and in advance and now want to pay off the loan since lower rates are now here, and several items have fallen off my credit report affording me the opportunity to do so.
The lender has now told me that pay off of my loan is not MORE than my original amount because of late fees, and when a late payment is made a higher interest rate is being charged.
I checked my contract and those terms do apply, but I made two payments in advance at the lenders request. Payment were to commence in May, I made two payments in March, two months in advance and still continued to make payments starting in May every month.
The October payment he received at the end of September (early) due to my being out of town. He didn't receive a check in the month of October and is now saying that he never received the October payment and the late fees and higher interest rate has been going since then with NO NOTICE to me.
He is referring to a statement in the loan that states, "any partial prepayment shall be applied against the principal amount outstanding and shall not postpone the due date of any subsequent payments or change the amount of such payments."
With me making two "payments" in advance and then starting to make payments that match the agreement of the loan, it would seem to me that I am 3 payments ahead of schedule.
I feel the lender is just piling on junk fees to make even more money than he did on the fees he charged to originate this loan.
Do I have any recourse? Who should I contact? Is the lender right? Can he apply these payments however he wants? Is it my fault that I never put on the check what month that payment was for?
I am VERY iritated about this as he has never contacted me before and now had his attorney contact me (adding $75 to my fees) and said I have 20 days to pay $1,500 in late fees and additional interest and $14.19 a day until brought current.
What keeps this private lender from doing this again? Does anyone know a good lawyer in Colorado?
Thanks. |
| Christine Baker (Admin) | Monday, February 26, 2001 - 05:10 pm
I don't know a Colorado lawyer, but you should be looking for one.
I recall someone else having a similar problem with a Colorado private lender, why don't you post who they are?
Other than suing, you can file a complaint with the agency that licenses them in Colorado.
Also, an EARLY payment is NOT a partial prepayment unless it's a revolving loan.
Do you have all your cancelled checks? |
| Christine Baker (Admin) | Monday, February 26, 2001 - 05:17 pm
Also, didn't you get monthly statements?
Do you have a comprehensive accounting statement? |
| Chad Adams (Dnvrkid) | Tuesday, February 27, 2001 - 02:29 pm
The Lender is Colorado Alternative Investments, LLC and the owner is Pete Landau. I beleive he has several companies that lend money.
I do have all my cancelled checks, his position is anything received earlier than the payment date is a principal reduction payment, even though it is exactly the amount of the payment that is due. I have made a couple principal reduction payments, but I always put in the memo FOR PRINCIPAL REDUCTION ONLY, and send a seperate check for payment.
Thanks for your feedback. Do you think I should pay the late fees, and get refinanced now before I start rocking the boat, or should I start filing complaints while he still has a lien on the property? |
| MV (Mel) | Tuesday, February 27, 2001 - 04:12 pm
So, you can't send a regular payment BEFORE the due date; but if you send it AFTER the due date they slap on a late charge? Do they expect you to get it there on that one exact due date?? I would contact a lawyer immediately. |
| Christine Baker (Admin) | Tuesday, February 27, 2001 - 04:42 pm
I agree with Mel. Of course I haven't read the contract, maybe it DOES state that all payments received prior to the due date are considered principal reductions?
I also believe that they should have to notify you once a late charge is applied. I don't know Colorado laws, but call the Department of Real Estate and see if they license them. If not, they'll be able to tell you where to go. They might even have a web site with info. That's if you don't have a lawyer.
How are you going to refinance with Colorado Alternative Investments reporting late payments?
Are you approved already for a new loan? |
| Chad Adams (Dnvrkid) | Tuesday, February 27, 2001 - 05:36 pm
That's one of the things with this company, they don't report anything. No statements or payment books to me, no reporting to the credit bureaus, and no notifications of anything to me on late payments or anything.
I am not sure he is licensed or not, as he is a private money or "hard money" lender.
The only reference to early payments is what I had stated in my first post "any partial prepayment shall be applied against the principal amount outstanding and shall not postpone the due date of any subsequent payments or change the amount of such payments."
Thanks for your help and I will keep you posted. |
| Christine Baker (Admin) | Tuesday, February 27, 2001 - 09:01 pm
I'm sure they have to be licensed. In California lenders have to disclose to borrowers who licenses them, check your closing papers, I think that's federal law.
Since the loan is secured by your property, it will show on your preliminary title report, or whatever they use in Colorado to show the liens on the property.
That's what your NEW lender will look at. They will require verification of timely payments.
Since it's not on the credit, you have the option of documenting the payments with your cancelled checks, we've had some discussions on this topic here. A direct lender might just send the mortgage verification to Colorado Alternative Investments, LLC.
If the VOM (verification of mortgage) comes back with late payments, or if the PAYOFF DEMAND indicates any late charges, you have a serious problem.
Work with an experienced mortgage broker, find out what your options are. |
