Washington Mutual forecloses on man who made every single mortgage payment, but the banks somehow misplaced his check and papers so oops we’re going to foreclose on you anyway. [Baltimore Sun]

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  1. stinerman says:

    I always wondered what’s stopping an unscrupulous business from simply not processing your payment when they get it in order to charge you late fees.

    Let’s say I pay my credit card bill via snail mail, and it arrives the day it’s due. The business can simply say they didn’t get it until the next day and then charge me a late fee and raise my rate.

    I’m actually quite surprised that this isn’t a common occurrence.

  2. 8abhive says:

    Wasn’t it Providian that was busted for making this SOP?

  3. hypebreaker says:

    @stinerman: It IS a common occurrence. AT&T started dinging me for late fees on my two accounts, which, of course, I ignored. I wasn’t about to accept that the post office was taking 7 or 8 days to send a check crosstown. AT&T kept insisting my bills were late so I finally asked them to send me a copy of the envelope with the postmark to prove my bills were, in fact, late. What do you know? Those late fees mysteriously disappeared from my statement!

    And WAMU? They’re champs at this kind of thing. Pottery Barn screwed up an order of mine once so they issued a credit back to my bank card and then re-charged it the following day. WAMU conveniently sat on my credit for 5 days but debited my account for the 2nd charge instantly, which left my account in arrears and subject to four overdraft charges.

    This just reminds me of why I need to dump them as my bankers.

  4. cyberslug says:

    Wamu screwed me too. It still haunts my credit to this day. Fortunately, my loan was transfered to countrywide now and I have nothing but good things to say about their customer service. Went like this..

    -Loan Orginator got first 2 payments
    -Loan sold to wamu, paid every month on time, but they claim I skipped my “first” payment (faxed them canceled check to the originator more times than I can count for the month in question), ended up paying late fees on it anyways..Grrrr
    -Loan sold to CW, happy
    -Refi with CW, still happy :) (I hope CW’s recent trouble doesn’t cause them to sell it off)

  5. Buran says:

    @cyberslug: Dispute it directly with the credit bureau. You’ve got proof; use it. You’re paying more and being otherwise punished when you shoudn’t be.

    Or consider court.

  6. goller321 says:

    I’m a bit confused… so Washington Mutual owned the original mortgage and refinanced- then said they didn’t pay themselves for the original mortgage? Is that right?
    I so wonder why more people don’t go postal on the execs of these companies…

  7. rworne says:

    @stinerman:
    It is a common occurrence. Ever try one of those 12 or 24-month no interest deals? I’ve done a few, and made sure they were paid off by the 10th month. If you are even one day over the promotional time limit, they sock you with back interest – and they literally take forever to cash that last payment by sitting on that last payment check.

    Best Buy gets lots of complaints about this.

  8. protest says:

    i don’t understand, you make mortgage payments with checks right? don’t banks keep records of cashed checks? why didn’t he get his bank involved to prove he made his payments?

  9. Crymson_77 says:

    This is exactly why I always pay bills electronically. That way there are two records of the payment being sent, one with your bank and one with the receiver. If they say that it never arrived, you have all the evidence you need to throw them over the barrell and take out the vaseline.
    About the story itself: this is just f@#$!@#%$@#$%@#$5 criminal. Wamu has given me yet another reason to hate them. This poor guy loses his home to a set of severe accounting errors! BTW, Maryland law is why this guy is now dealing with this crap. There should be a homestead exemption in every state and it should be reverted to the way it used to be in Texas where they could NOT take your home for any reason beyond total nonpayment of your home loan. It used to take an act of Congress to take your home in Texas, but they changed the law and now all the homestead act does is give you a tax discount….whoopee…

  10. blackpanic says:

    Citibank got in trouble for applying payments received on their dute date, which is why they implemented a “due time”, which is 1pm or some nonsense. In other words, it’s due the business day before the due date.

  11. dgcaste says:

    They’re supposed to use the postmark date to evaluate the actual payment date. Usually worded as “checks postmarked no later than…”

  12. mac-phisto says:

    @protest: it’s not that he can’t prove he made his monthly payments. he can’t prove that wamu paid off wamu when he refinanced. & wamu seems to have misplaced the paperwork showing that they received payment for the mortgage that they refinanced. how freakin dumb is that?

  13. RottNDude says:

    This man’s issues aside, this is why I pay online, and print the payment confirmation (which typically includes some form of tracking code) each and every time.

  14. stopNgoBeau says:

    While I have great empathy for the man involved, I don’t agree with letting the courts shape forclosure law. Let them rule something is unconsitutional, and I’ll go for it. Let them “reshape” the law, and I say they are impeding on the legislative branch’s job.

    Just my .02

  15. JohnMc says:

    Protest, there is a little matter of paperwork that needs to be filed. If you satisfy a mtg you have to have the paperwork filed at the country clerk to have to have the satisfaction of mtg registered. Sadly I bet the figured he made his last payment and that was that. I feel for him and am surprised it got this far without having the foreclosure recinded.