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Can the bank apply a payment for mortgage to another loan?

We have (2) loans, our mortgage and a line of credit on our home equity. My husband lost his job and we were trying to keep up the payments on our mortgage. When he paid a payment he used a payment coupon for the mortgage loan. Instead of applying the whole payment to our mortgage, the bank put some of the payment towards (1) month of the mortgage loan and the rest towards the home equity loan. So now we are still (1) month behind on our mortgage payment and the home equity loan is paid for about (4) months ahead of time. We are trying our best to keep this house. Yes my husband used a payment coupon with the loan number on it and he received a receipt for the amount and the loan number was on the receipt also.

Public Comments

1. Didn't you mark the check? Didn't you check the receipt? Did they make a simple mistake? Haven't you informed them?
2. I would highly recommend a real estate attorney in your case.
3. Minimum payment for the HELOC is interest for the past month, There is no such thing as "paid 4 months ahead of time". If you pay more than the interest, that goes towards principal, and you still owe the interest on the balance each month. So you will need to consider that when trying to work things out.
4. it does not matter at all as both are due every month. So if you do not pay one or the other they can still foreclose on either note