In some states, the information on this website may be considered a lawyer referral service. Please reference the Terms of Use and the Supplemental Terms for specific information related to your state. Grow Your Legal Practice. Meet the Editors. How to Dispute Mortgage Servicer Errors. Here's how to make your servicer correct an error or provide you with important information. Notices of Error If you send a letter to notify the servicer about a particular error that it made when managing your loan, the servicer must correct the error, provide notification of the correction, and give contact information for you to follow up, or let you know that no error occurred along with the reasons for this conclusion.
Common Types of Servicer Errors With so many different duties and variables, there's a lot of room for error when it comes to loan servicing. Under the law, the following servicer errors can be addressed in a notice of error: refusing to accept conforming payments improperly applying or crediting payments imposing unreasonable fees or charges neglecting to pay property taxes or homeowners' insurance failing to transfer accurately and timely information relating to the servicing of a borrower's mortgage loan account to a transferee servicer not providing an accurate payoff balance amount upon a borrower's request failing to provide accurate information regarding loss mitigation options and foreclosures improperly starting a foreclosure , dual tracking , or conducting a foreclosure sale in violation of federal mortgage servicing laws , or any other error relating to the servicing of a borrower's mortgage loan.
Deadline to Acknowledge a Notice of Error The servicer must acknowledge a written notice that asserts a particular error within five business days. Deadline to Respond to a Notice of Error How much time the servicer gets to respond to your notice of error depends on the type of error that you claim the servicer committed: If you claim that the servicer didn't provide an accurate payoff statement after you asked for one, it must respond no later than seven business days after receiving your letter.
If you claim that the servicer wrongly started a foreclosure or improperly scheduled or conducted a foreclosure sale, it must respond before the foreclosure sale date or within 30 business days after it receives your letter, whichever is earlier. If you claim a different type of error, the servicer must respond within 30 business days after it gets your notice. Requests for Information A request for information can be useful if you're unsure whether the servicer made an error and want to get information about your account to help you make this determination.
Deadline to Acknowledge a Request for Information If you send a written request for information, the servicer must acknowledge your inquiry within five days. Deadline to Respond to a Request for Information The servicer must generally give you the information you requested within 30 business days or explain why the information is not available, as well as provide you with the name and contact information of someone you can follow up with.
When the Servicer Doesn't Have to Respond to Notice of Error or Request for Information The servicer doesn't have to address your notice of error or request for information in some situations, like if: your letter is about an error that is essentially the same as one you previously asserted and the servicer has already responded to it your letter requests information that is essentially the same as a previous request and the servicer already responded to your request your request is overly broad, or you're asking about a loan that was transferred to another servicer or that was paid off more than a year ago.
Please advice. Thank you for your time. Sorry for what you went through. Recently my mortgage company, Ocwen , was brought out by PHH mortgage. I have sent in a payment cashiers check for The amount was large because there was a mtg increase that I was not told about this so they sent like 4 or 5 payments back, I added the differncence with a My check for I asked for a letter explaining what was going on, they sent a generic letter stating that they were in reciept of my letter I never wrote them a letter I asked why the letter did not include what was discussed and they said it was a generic letter!!!
I asked for an explanation in writing. They admited to having my money and I am supposedly waiting for the money to be applied to my loan. However, today when I arrived home there was a letter rom PHH enclosed was the Did I mention that my house is in foreclosure? I came home to this letter not long after sending in over 7k!!!! I reached out to the attorney who hasnt started anything, he said tat he just got the case and advised I call the mtg co again, his parallegal supposedly added a note.
All i know is that I did not pay late, I can prove this and I have kept records of every conversation. I am at my witts end because I keep calling and no one ever reaches back and when they do, they send something as ridiculous as the cashiers check i sent them, where is the I live in a newly gentrified area, everyday my property value increases and i believe that this is a machination designed to steal my property, but it will be over my dead body!!!!
Please please please help me, I am a hard working school teacher here in DC, I have a teenaged daughter and i just need to know what to do. Please help me solve this problem. I have talked and talked with this company and they never give me a managers number when I ask, they never let me speak with anyone in higher management.
I have removed the auto pay from my account because they kept taking additional charges not authorized and on dates not authorized and over drafting my bills account. Would this count as stress? Hi, my family is currently encountering an issue where we were trying to sell our current house and later in the process we found out that we had a second lien on the home and our father has never signed for one.
After hiring 2 lawyers we found out that the mortgage company copied and pasted the signature page from the original deed of trust and used it to create a deed of trust for their company without paying off the bank that we pay our mortgage through currently and without our permission. We tried to get them to cancel it by requesting information which they have not responded to excluding a statement they sent saying that they will no longer collect on the debt but will not cancel it neither.
Latrese sorry dealing with this. If you are in AL contact us or email me at [email protected]. Then you can decide what steps to take next. John has become an accomplished attorney prosecuting credit reporting agencies and unscrupulous creditors for violation of the Fair Credit Reporting Act and has obtained good results on behalf of Alabama consumers. Alabama Consumer Protection Lawyers.
Michelle Blodgett says:. March 18, at am. John Watts says:. March 20, at am. Scotty says:. January 25, at am. January 26, at am. For example, in the case of an accidental foreclosure, the court may order that the foreclosure process and result be rescinded. As mentioned above, if your mortgage lender commits negligence, you may sue your mortgage lender. Examples of this can include where they negligently fail to include terms in the loan agreement that were agreed to by both parties, or if they breach their fiduciary duties.
Additionally, you may be able to sue your mortgage lender if they or one of their officers negligently made false representations in order to induce you into making an otherwise unreasonable loan.
As can be seen, there are many disputes that may arise with a mortgage lender during the process of purchasing a home. Further, the real estate process is often a complicated process involving numerous parties.
Therefore, it may be in your best interests to seek out a well qualified and experienced mortgage attorney to help guide you through the process of obtaining a mortgage and purchasing a home. An experienced mortgage attorney can help you review loan documents, assist you in contract negotiations, as well as represent and file a legal claim on your behalf against the mortgage lender, should any disputes arise.
Travis Peeler. Travis earned his J. Travis has written about numerous legal topics ranging from articles tracking every Supreme Court decision in Texas to the law of virtual reality. In his spare time off from the legal world and quest for knowledge, this 3rd degree black belt and certified instructor aspires to work with various charities geared towards bringing access to entertainment and gaming to all persons.
Jose Rivera. Law Library Disclaimer. Can't find your category? Click here. Condominiums and Cooperatives. Some banks, however, overreach. That is when problems occur.
Can it order a borrower not to fulfill a contract the bank thinks is unprofitable? Direct what bills get paid? The problems today exist on the margins. Just how far can a bank interfere with management? Today banks often try to push their limits by forcing customers to hire certain specified consultants, consultants that the customer you must pay. These same consultants must also approve every expenditure. Cases We Handle Home. Our Legal Team. Cases We Handle. Personal Guarantees.
Theories of Liability. Loan Application Violations and Failure to Honor Commitment The lender — borrower relationship often begins when the borrower submits a loan application. With the radical change in banking relationships came a change in lender liability theories. Now lenders are potentially liable to borrowers and applicants under a wide range of legal theories including: Misrepresentations in the application and commitment process Improper application processing including undue delays Discrimination primarily in residential lending but sometimes found in commercial lending Steering clients to loans with higher rates or costs Appraisal fraud Insurance issues, e.
Failure to Renew a Loan Many times a bank will renew demand notes or short term notes and then suddenly and for no valid reason demand a business owner pledge his or her home or sign personal guarantees. The language in loan agreements invariably favors the bank. However, all is not lost! Improper Foreclosures Since , there have been hundreds of thousands of foreclosure cases filed in the United States.
Improper Acceleration Virtually every loan document contains an acceleration clause. Insecurity Clauses Loan documents are usually written by the banks and other lenders.
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