[Christien]

Originally Posted by Taz's Master

I don't know how the loan was set up, nor if everything is and always has been current, but I thought a mortgage was set up so that each month you paid off all the accumulated interest, and a portion of the principal. If that is the case, isn't the bank basically charging for interest that has not accumulated? I mean a $100,000 loan at 12% in the first month accumulates $1000 of interest, if the payment is set at $2000, and he sends in $4000, there is only $1000 worth of interest to take out of the payment, where would the interest BoA is taking out of the overpayment be coming from?

I can't possibly for the life of me see how this could be incorrect. You agree to pay interest on the outstanding balance at an agreed-upon rate, at an agreed-upon interval, and that interest is charged at an agreed-upon interval. Anything paid above and beyond that interest during that interval MUST be applied to principal. Unless there's some kind of really sneaky clause in the mortgage contract (which you or your lawyer absolutely should have noticed - no excuse for not reading it in full) then to do otherwise would be illegal - basically theft.