BAYVIEW LOAN SERVICING UNFAIR BUSINESS PRACTICES CORAL GABLES Florida

We have a commercial mortgage that began with InterBay Funding in January 2005, that immediately went to Bayview Loan Servicing (loan #2055873), and then to M and T Mortgage (loan #0007662398) in July 2005. Now it's back with Bayview Loan Servicing (loan # 0200030918) according to a letter dated July 7.

All this time our monthly payments of principal, interest and escrow for taxes and insurance have been made by ACH withdrawal.

I received the letter from Bayview Loan Servicing dated July 7, 2006 notifying us that they were once again servicing our loan. I received a letter dated July 8 that our loan payment was past due. I had not received any bills or other notices that the loan was not being paid. After checking with our bank and finding the payments had not come out of our account, I mailed the May, June and July payments to Bayview on July 14.

On July 21 I was told by Dione Matthews at Bayview by phone that they are returning our checks because the property is in foreclosure.

According to her this all began because a payment that was taken on May 5 by M and T Mortgage was rejected for non-sufficient funds. This was the first I had heard any of this information.

According to M and T Mortgage (from a phone call to them yesterday - July 24) they had been calling us at our old phone number (we moved in December 2005). I believe there was a recording informing callers of our new number. They had our new mailing address but did not attempt to contact us by mail. M and T did not attempt to take the June or July payments.

What are the laws regarding rejected ACH payments? Isn't someone required to notify us? How do we proceed now? The checks I sent on July 14 have not been returned to us yet. Should I send a check for the August 1st payment?

When I call Ms. Matthews at Bayview (1-800-457-5102) I always get her voice mail. I have not gotten a call back yet from the last message I left on 7/24/06.

Sandy
PLAINFIELD, New Hampshire
U.S.A.