Homesaver Advance

[onshore]

Cutting to the chase - I got into some mortgage and auto loan trouble at the end of last year due to medical bills for my premature infant son and consequently being unable to work outside the home his first year.

 

Literally hours before my home was scheduled for auction, morgage co. calls and says I've qualified for new program called Homesavers Advance. Actually, the timing was so close that they did "sell" it at auction the next morning, but the mortgage company later refused the sale because of my qualification for this program.

 

Today they applied the payment from this advance/loan from Fannie Mae (I think)... and applied it ALL to fees! My promissory note says it's for back mortgage payments, which I know are made up of interest, principal, and escrow payments. The paperwork is incredibly vague and limited to 3 sheets of paper, unlike the world dictionary I had to sign at closing years ago.

 

My question is, can they do that? Do I have any recourse? Is this how the program works? I certainly don't want to look a gift horse in the mouth, but I also don't want to begin repaying something that ended up just being a donation to my mortgage company. I've done searches here and on the web and can't find much at all about the program specifics.

 

Thanks in advance for any insight or suggestions, I really appreciate it.

[DavidType-S]

Here is some information on the LOAN...

 

https://www.efanniemae.com/sf/servicing/homesaveradvance.jsp

[onshore]

Thanks, I appreciate it, but I actually have all of that basic info.

 

My issue is, the way I read it, the loan is applied to PITI, attorney fees, etc. - my mortgage company, however, applied it all to a catch-all category they call FEES, and made no changes in the principal or interest to reflect this payment they received.

 

Is there a loophole that allows them to do this (bring my loan technically current, but distribute the loan proceeds however they see fit)?

 

Of course, this is the same company that received my homestead exemption refund of almost a grand and applied it to - you guessed it - FEES (when none were owed). Everyone else I know received this money back from their lenders.

 

Anyway, this move by them makes a 5-figure difference to me should I put the house on the market this summer, and makes everything different should I attempt to refi later.