Letters going out in California and Washington

[Mitch Kronowit]

Just an FYI.

Yesterday, I received two letters from my credit union regarding two mortgages that I have with them. These letters requested that I call the mortgage department of the credit union ASAP in order to discuss "bringing my account current" and "options to avoid foreclosure". :wowo:

As I have NEVER missed a mortgage payment in my entire life and my credit union's web site confirmed ALL my September payments were made on time, I was LIVID!!! :pissed: The fact it was night time and after midnight on the east coast didn't help either.

First thing in the morning, I called the number provided in the letters to "discuss my options". Boy, did I feel sorry for the poor SOB unlucky enough to have my call routed to their desk! :mrgreen:

After I demanded an explanation, I received it. Apparently, there is a new rule in California and Washington State that requires lenders to send this stupid letter to any borrower that has not paid their mortgage by the 5th of the month. The two mortgages in question were set up for auto-pay on the 9th, the DEFAULT option that my credit union provided when I set the auto-draft up!

Bottom line: My credit union didn't have ANY issues with me or my accounts. They said I could continue paying on the 9th for the rest of the loan if I chose to, but the computer would spit out these "helpful" letters every month. So, I changed the auto-pay date to the 4th to avoid the BS.

I know there is another thread from earlier this year that discusses WHEN to pay your mortgage. This may help decide. Personally, I don't care if it's the 1st or the 15th, I just go with the lender's default, figuring that's THEIR preference.

Anybody else know anything about these letters?