30 year fixed due in April but there is a problem

[Administrator]

Our 30 year fixed rate mortgage is due next April. We've always payed our payments on time and have never had any problems. We wre really looking forward to finally completely owning our home and being through with the payments. Then for whatever reason we decided to do the math. We found out that there is NO WAY our loan will be paid off by the final payment date. We will still owe several thousand dollars. We found out that for all these years, the mortgage provider has been under billing us. We should have been paying about $80 more per month than we have been. I can't believe we've never done the math before, but we just took it in blind faith that everything was perfectly planned out by our provider. The contract states that the loan is to be paid in full on the date of final payment and there IS also a clause in the contract that states any discrepancy would also be due on the date of final payment. We'll, the discrepancy is over 20 thousand dollars and we are not prepared to handle that kind of lump sum due in less than a year. Now, I've had some friends tell me what the provider is asking for is illegal. That we signed the mortgage andquot;In Good Faithandquot; that the payments would be planned out properly to be paid in full via the monthly payments up until the 30 years have expired. I've had others say that it was our fault for not making regular check ups on our mortgage. Can anyone shed some light on this? Is the provider at fault for not having the paymenst balanced properly or are we at fault for not checking up on this sooner? More importantly, what are the outcomes for both scenarios? If the provider is at fault, do we still owe the money? I've been told by some friends that if they made the mistake then we are absolved of the final lump sum. I've also been told that even if they are at fault, we still owe the full amount in a lump. I've also heard that the bank may settle for a smaller sum or extend our payments until the debt is payed in full. And what if we are at fault? Will the bank demand full payment or will they possibly work out extended payments? I would sure appreciate some help on this, as all of the people I've spoken to say they have never even heard of anything like this happening...


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(Source: mortgagefit.com)