Southwest Business Corporation Mortgage Complaint

Southwest Business Corporation Mortgage department,

Conventional fixed mortgage Loan servicing, payments, escrow account Texas

My wife and I are in the process of setting up our retirement. I am - and my wife is -. We got this loan on the basis we could pay it off incidentally with our 401K withdrawals. As you know, if we take too much out at once the tax burden is very high, so it was our intention to pay it off as much as possible while we are still working and then do incremental withdrawals from our - and get really serious about closing out the loan when we fully retire. The point is, it was very important that we had a loan without pre-payment penalties. We checked on many levels to insure this when we signed the loan papers. It was not a small detail regarding the loan, it was a major point. The first Important document which is attached to this complaint is the statement that says there are no pre-payment penalties. To follow is the monthly statement which I receive each month in the form of a bill and then the - amortization schedule. These documents were given to us at closing and have - 's name on them. Please keep in mind there


our current date and last payment and the balance should be $92000.00. There are no complications with payments or late fees. We pre-paid $3000.00 against the principal which should make the current Outstanding Principal $89000.00. You will see on the monthly statement, - shows a different Outstanding Principal of $90000.00, a difference of $280.00. When I spoke to a - representative about this discrepancy, it took a very long time to get to the bottom of the issue and he was very sheepish about the cause. They are charging a re-amortization fee of 9.8 % for every pre-payment made against the loan. The representative offered no solution for their pre-payment fee. I will also attached the letter I sent to - regarding this issue. I have not receive a reply. These fees need to be refunded to me and put toward the loan principal where they were intended. The contract clearly states. No p [ re-payment penalties. '' There are no fees or exceptions to this statement. I find this an act of fraud and breach of contract I am certain they are penalizing all their customers who choose to prepay there loan and who are not aware of what is going on. They should be fined for their underhanded misdirection of funds.