Man delinquent on mortgage after bi-weekly paymentsPosted: Updated:
PHOENIX -- A Phoenix man says he paid his mortgage so why does his lender claim he's delinquent?
This was a mistake apparently because of what's called bi-weekly payments.
A lot of folks don't know it, but you can actually cut your 30-year mortgage down to 24 years if you simply make bi-weekly payments instead of paying monthly.
That's what a Phoenix man says he wanted to do, but something went wrong.
Fred Wolnerman likes to pay his mortgage online. He says it's easy and it keeps him from being late.
That history indicates Wolnerman is right. He always paid his $1,100 mortgage on time. But when his mortgage recently transferred from Countrywide to Bank of America, Wolnerman says he wanted to start staggering his payments by paying $550 in the middle of the month and $550 at the end of the month.
He claims he asked B of A if they had a problem with bi-weekly payments.
"Over the phone, they told me no," Wolnerman said. "I said to them, 'Then, I'm going to start making twice a month payments.'"
But as soon as Wolnerman started his half payments, something happened and Bank of America told him that he was delinquent.
Every time he called B of A he says he would grow more frustrated trying to explain that he was actually current.
Wolnerman says the whole ordeal has exhausted him.
"I'm seriously thinking of refinancing the house just to get the mortgage out of their hands," Wolnerman said.
So what happened here? Well, as it turns out, Wolnerman forgot to enroll in Bank of America's bi-weekly payment program.
You just can't convert from monthly payments to biweekly on your own without enrolling.
Because Wolnerman didn't enroll, one of his half payments was misapplied, but Bank of America has now straightened things out and I certainly appreciate that.