Mortgage company and amounts due, new contract?

Purchased the home in 2004, loan refinanced in 2008 and modified in 2010 with Chase Bank. I received notice dated 05/15/2018 from Towd Point Master Funding Trust informing me that ownership of my mortgage in the principal amount of $205,857 had been transferred from Chase to Towd Point, SPS as servicer.

On 04/27/2020 requested Payoff quote from SPS and received a total with unpaid principal balance of $274,399 plus interest. I responded with an Error Resolution Notice for the unpaid principal balance to be corrected to reflect the new stated contract amount per Towd Point notice of 05/15/2018. I also sent a Request for Information letter for SPS to provide detail of any new contract since that last date. SPS responded providing me with a copy of the loan modification signed with Chase Bank in 2010, which included a approx $55,000 deferred principal balance, an amount which Towd Point had not initially advised me that I owe Towd Point as part of my expressed principal balance with Towd Point.

I'm contending that...since the new mortgage holder, Towd Point, quoted me a different (lower) principal balance as the amount that I owed them, can I hold them to that lower amount and have them correct the payoff balance to reflect that lower principal balance? As my new mortgage company they sent me a principal balance and I would like to hold them to that. I believe that from a legal standpoint, Towd Point made a new contract with me in 2018.

How should I best handle this?


  • edited July 18
    In my opinion, there is nothing you can do in this situation. As Jack said, you signed the contract with the original bank and knew all the conditions. You cannot make claims to the new owner of the mortgage loan in the person of Towd Point. However, it would be best if you had chosen a better bank to apply for a mortgage. You could have foreseen that a weak bank would not be able to cope with the financial burden for several years, and this could happen. I always advise my friends to contact Mortgage Broker Manchester . A specialist will help you make the right and balanced decision. This is much better than later facing negative consequences.
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