I've run into a frustrating practice several times. When over 30 days due, but under 60 or 90 days, a creditor will ONLY allow you to make FULL payment, whether that be 2 or 3 payments. They will not allow you to make one payment now, and another in a few days or weeks. It's all or nothing.
Other than to screw the debtor over, what is the logic behind operating this way? In my particular situation, I could pay one month pronto, and by next paycheck catch up. As it is I'll have to stash the first payment in the bank and sit on it for a couple of weeks, then pay the full amount. Which seems a rather dumb thing to do to me, at least from the creditor's perspective. Sitting on the cash for a week or a month increases the odds of the debtor/consumer spending the money on something else, whether it be an emergency, a necessity or spending it on shiny baubles (I have no intention of doing the last, but it is a temptation for some.)
@FireMedic1Right now I'm 40 days past due. They are demanding both months' payments immediately. So I cannot pay one month to bring my account to 10 days past due, and make the other payment with my next paycheck. The only option I am being given is to pay both months all at once.
Perhaps I'm a little confused by the terminology. To me a partial payment is, say, 1/2 a month's payment.
To get down to hard numbers, I my mortgage account in 40 days past due. If I log in to my service provider's website, it will only allow me to make two payments. I have enough to make one payment (and put the account 10 days past due instead of 40), but not the two they are demanding.
And the irony is, I'm not even living there any more. Trying to pay a lease *and* a mortgage is fun....
If you can make 1 payment. That will keep the lates at 30 days. You dont want a 60 on your reports. Who is the lender again? What are the plans with the house. Sell it, rent it? You can mail one payment. They wont send a check back.
I called the servicer directly, and they explained the payment restriction was because I had not made contact prior to the account becoming 30 days late. After I told them I had found a new job (after being unemployed for a few months) and made a promise to bring the account current by the end of the month (next paycheck should cover it easily), they relented and let me make the January payment.
I had found a buyer, but the home inspection turned up several problems. Addressing them would cost several thousand dollars - money I don't have right now. (Assuming I can hold on to this job, I should be able to cover the repairs in the next few months.) Likewise, selling the property as-is would force me to take a huge loss I also can't afford right now. If the house were in good repair I could probably break even.
My real estate agent has suggested making a couple of the most critical repairs and then letting a property management company t
rent the place put. Since I am now on the opposite side of the country, that seems like the best plan.
