Is it legal for a lender to require a borrower to make payme

gemello1973 · Joined: 08 Apr 2008 Posts: 1 1.33 Dollars($)

I am working with my lender to prevent a forecloseure. They are requiring me to make all future payments by Western Union, incurring a $10 fee every time. I offered to send a money order or cashier's check (certified funds) and they refuse. Is that legal?

larry · Joined: 27 Jun 2007 Posts: 3328 473.40 Dollars($)

Hi,

Welcome to the forum.

I think lenders may charge you some fees as they are working with you can spend their time for you but it depends upon lenders to lenders.

BTW you can have a look on the article on how can you protect your self from foreclosure at http://www.mortgagefit.com/foreclosure/17ways-avoid.html

Best of luck,
Larry

evolovik26 · Posted: Wed Apr 09, 2008 6:48 am Post subject:

Might be that they want to guarantee funds. Although if you on the verge of foreclosure then I am not sure bank is in strong position to pressure you into much of anything.

michelle · Posted: Wed Apr 09, 2008 8:27 am Post subject:

Welcome to the forum gemello1973,

Although I am not sure if it is legal, I would have to say that it probably is as many lenders require this when foreclosure is in sight.

Have you ever had an issue with them not being able to collect funds from you before? If so, that could be one reason. Another could be that although to most people cashier's checks seem like guaranteed funds, they can actually be falsified or a stop payment can be issued on one. So as crazy as it may sound and the additional fee is definitely not pleasant to you as the borrower, the banks position to take only western union does make sense if you see it from their side.

I sincerely hope all is well and that you are able to avoid the foreclosure. Please let us know if we can be of assistance in any other way.

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