Ifyou are behind with payment, can a mortgage holder place payments in a suspense account and not credit the payments to your mortgage?

UPDATED: Oct 4, 2011

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Ifyou are behind with payment, can a mortgage holder place payments in a suspense account and not credit the payments to your mortgage?

I sent in payments to my mortgage holder. They placed it in a suspense account and did not credit the payments to my account. Now they are saying that I owe 2 payments. So it looks like I am 5 payments behind. Is there anything I can do about getting these payments out of that suspense account and credited to my account? I am afraid to send any more payments in for fear they will do the same thing.

Asked on October 4, 2011 under Real Estate Law, North Carolina


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

Whether or not your lender can place delinquent payments for the mortgage's or trust deed's payment in a suspense account depends upon the terms of the loan agreement that you signed. Accordingly, you need to carefully read your loan agreement in that its terms and conditions control the obligations owed you by the lender and vice versa in the absence of conflicitng state law.

If your loan agreement is silent concerning your question, you need to call your lender about the issue you are writing about and get clarification as to it. Once you get clarification, you need to write a confirming letter to your lender's representative keeping a copy of the letter for future reference.

Given the circumstances, it sounds that it would be a good idea for you to consult with a real estate attorney about your question sooner rather than later to get a clearer undertstanding about the purpose of the suspense account.

Good luck.

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