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I had a post a few weeks ago about my credit scores, which was all about getting a home equity loan to pay off High credit card payments.
I got the loan which was $25,000.
Here's the problem:
My loan officer sent a digital check to visa for my costco card, which was $6,000.00
The loan officer also sent out $7,747.00 on the same day to Mastercard for my Sears credit card.
It took one day for the payoff to show on the visa costco card "But" it has been almost two weeks and there is no payoff for the Sears Mastercard!
I contacted my loan officer last Thursday and she said that she (loan officer) has the name of the person, the time and day that the check had been accepted!
After I called Mastercard to see why they haven't showed the payoff, they say they have No record of the payment!?
I called my loan officer back and she said the check hasn't been processed?
My question: If my next payment date arrives and my account hasn't been "Zeroed Out" .. what should I do?
Make a payment and trust that they will refund the money after the account is paid in full?
I do not want these people to ding my credit for a late payment .. especially since I have paid them off!
My loan officer is away until Wednesday and my payment date is coming rapidly! 8(
Let me get this straight: You got a SECURED equity loan on your house, to pay off UNsecured credit card debt?
Hoo, boy, that was your second mistake. Before you could have made some phone calls and maybe made a deal for paying everything off. That put YOU in the power chair. Now your actual house is at risk, and your CREDITORS have ALL the power on their side.
You need to call a lawyer, and discuss this with him.
I am not making a judgement here, I'm trying to slap you awake! Get some LEGAL advice NOW!
Even if the lawyer does nothing more than send them a letter on his letterhead, they might just suddenly "find" the missing money.
Let me get this straight: You got a SECURED equity loan on your house, to pay off UNsecured credit card debt?
Hoo, boy, that was your second mistake. Before you could have made some phone calls and maybe made a deal for paying everything off. That put YOU in the power chair. Now your actual house is at risk, and your CREDITORS have ALL the power on their side.
You need to call a lawyer, and discuss this with him.
I am not making a judgement here, I'm trying to slap you awake! Get some LEGAL advice NOW!
Even if the lawyer does nothing more than send them a letter on his letterhead, they might just suddenly "find" the missing money.
You don't make a deal with a creditor unless you're ready to have your credit score drop big time. You're NEVER in the power chair because they control your credit score, not you. The house is at risk only if the payments for the secured loan isn't paid, it's not at risk simply for taking out the loan. What is the purpose of the lawyer? Lawyers aren't free and that alone could cost thousands and absolutely not necessary at this point.
To answer the original question, it's up to your lender to find out what happened to that money and make it right. They should be in contact with the credit card company that says never received the money and trace where the money went and to where it was deposited. I would just make the minimum payment on that credit card until this is resolved. Any money paid to the creditors that exceed what you owe will be given back to you as credit on your card or a check.
Last edited by marino760; 10-10-2016 at 05:40 PM..
I had a post a few weeks ago about my credit scores, which was all about getting a home equity loan to pay off High credit card payments.
I got the loan which was $25,000.
Here's the problem:
My loan officer sent a digital check to visa for my costco card, which was $6,000.00
The loan officer also sent out $7,747.00 on the same day to Mastercard for my Sears credit card.
It took one day for the payoff to show on the visa costco card "But" it has been almost two weeks and there is no payoff for the Sears Mastercard!
I contacted my loan officer last Thursday and she said that she (loan officer) has the name of the person, the time and day that the check had been accepted!
After I called Mastercard to see why they haven't showed the payoff, they say they have No record of the payment!?
I called my loan officer back and she said the check hasn't been processed?
My question: If my next payment date arrives and my account hasn't been "Zeroed Out" .. what should I do?
Make a payment and trust that they will refund the money after the account is paid in full?
I do not want these people to ding my credit for a late payment .. especially since I have paid them off!
My loan officer is away until Wednesday and my payment date is coming rapidly! 8(
Your Loan Officer sent nothing. It was handled by the Title Company that closed you. Deal with them. Also, a digital check is a Wire. It is likely taking a little time for the payoff to register. Make the minimum payment, and any overpayment will be mailed back to you.
BTW, what kind of company did you use for the Home Equity loan?
Your Loan Officer sent nothing. It was handled by the Title Company that closed you. Deal with them. Also, a digital check is a Wire. It is likely taking a little time for the payoff to register. Make the minimum payment, and any overpayment will be mailed back to you.
BTW, what kind of company did you use for the Home Equity loan?
It was my bank (BB&T) that approved the loan, same bank that has my mortgage.
I took the loan because the credit cards interest rates were at 25% and my new loan is only 5.75%.
I will have no problems on the loan repayment and I really didn't have a problem with the credit card payments.
It all came down to paying out $750.00 a month on the cards or $217.00 a month on the new loan!
The math looks a lot better now. 8)
The fact is, I have over a hundred thousand dollars in equity in the home and I saw no reason not to use a small part of it?
First, don't let everyone beat you up. Debt consolidation is not reckless for someone with equity and can manage the payments. Fortunately, most only need to do one heloc before they exercise the utmost caution with future revolving accounts.
Make the minimum payment and relax. No one can legally keep your money, it will come back to you. Also, only 30 day lates are reported, not one, two, three or ten days late. Most likely, the account number was incomplete and sent in without a statement. They won't cash the check until they know where to apply the payment. Someone may eventually have to put a stop payment and reissue the check. The good news is any serious money must be accounted for.
(You could likely push the issue if there was a late fee and demand reimbursement if you could show the check had the wrong account number, but save yourself the energy. Write a check for the minimum, chill, and it will all catch up. Everyone involved here are REQUIRED to balance their books on your loan).
First, don't let everyone beat you up. Debt consolidation is not reckless for someone with equity and can manage the payments. Fortunately, most only need to do one heloc before they exercise the utmost caution with future revolving accounts.
Make the minimum payment and relax. No one can legally keep your money, it will come back to you. Also, only 30 day lates are reported, not one, two, three or ten days late. Most likely, the account number was incomplete and sent in without a statement. They won't cash the check until they know where to apply the payment. Someone may eventually have to put a stop payment and reissue the check. The good news is any serious money must be accounted for.
(You could likely push the issue if there was a late fee and demand reimbursement if you could show the check had the wrong account number, but save yourself the energy. Write a check for the minimum, chill, and it will all catch up. Everyone involved here are REQUIRED to balance their books on your loan).
This. Make the min pay just in case, and you will get the money back.
And no, debt consolidation isn't reckless. But if you can afford the 750 per month instead of the 217, or maybe 500, I'd throw the extra onto that debt every month. 5.75% interest is a lot better than 25% but it's a lot worse than 0% if you get it all paid off more quickly!
First, don't let everyone beat you up. Debt consolidation is not reckless for someone with equity and can manage the payments. Fortunately, most only need to do one heloc before they exercise the utmost caution with future revolving accounts.
I can't Thank You enough for your help on here and in the PM's that I sent you!
Today, all of my worries were answered!
Here Goes:
I had written a post about my problems with a payoff of almost $8,000.00 on my Sears MasterCard which for two weeks went missing.
I also posted about the loan that I received from my bank and Why there was a $25,000.00 HELOC with a payment of $231.00 and a $25,000.00 Fixed Rate account with a payment of $217.00! Both due on November 4th.
First, the $8,000.00 was not missing.
For some reason, CitiBank insisted that my loan officer and I had to be on the phone together to acknowledge the payment to the account?
It, (the payment) had been sitting on someone's desk for two weeks!
No reason given on why .. the same bank, (CitiBank) accepted and applied my payoff on the Costco Visa Card and wouldn't do the same on the Sears MasterCard without the above hoops! (Three way call)
Both cards are owned by CitiBank.
The bank loan thingy was quite simple.
My loan officer opened a HELOC (home equity line of credit) which is akin to a credit card, took out all of the money and paid off the high percentage credit cards and deposited the rest into my savings account.
After doing that, my loan officer converted the HELOC account to a Fixed Rate account where my payments will be $217.00 a month from now on!
YAAAAAAAAAAAA!!!
That HELOC account was charged $14.00 for interest and draw-down charges which is why there was a $231.00 payment due instead of $217.00
I wrote a check today for the $14.00 on the HELOC account which will effectively close that account and have me paying on the Fixed Rate account!
She (loan officer) did it this way to save me on the appraisal and other fees associated with a regular Home Equity Loan.
I am now in a very good place with a lot more breathing room!
From almost $900.00 a month in payments to $217.00 a month!!!!
I still have almost $100,000 equity in my home too!
The Math works out just fine!
Thank You Everyone!!
Last edited by claymoore; 10-12-2016 at 05:41 PM..
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From almost $900.00 a month in payments to $217.00 a month!!!!
I still have almost $100,000 equity in my home too!
The Math works out just fine!
Thank You Everyone!!
Yes, but $217 a month, is that for 30 years?
$900 a month pays $25K in a few years.
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