Servicers dirty tricks

Mortgage servicers, who are the companies that manage home loans, sometimes engage in deceptive practices, especially when dealing with securitized residential home loans. Here are some of the key tactics they might use:

1. **Misapplication of Payments**: Sometimes, these servicers don’t apply your payments correctly. They might put your money towards fees or other costs instead of reducing your loan balance like they should.

2. **Unjustified Fees and Charges**: They might add on extra fees or charges that aren’t fair or even necessary. This can include late fees, legal fees, or other costs that might not be justified.

3. **Dual Tracking**: This is when they’re working with you on a loan modification to lower your payments, but at the same time, they’re also moving forward with foreclosure. This practice is particularly sneaky because it gives you false hope that you’re solving the problem while they’re quietly taking steps to take your home.

4. **Lost Paperwork and Miscommunication**: Often, they might ‘lose’ your paperwork or fail to communicate properly. You might send in documents for a loan modification or other assistance, and they’ll say they never got them or that something was missing.

5. **Forced-Placed Insurance**: If they think you don’t have enough insurance on your home, they can force-place insurance and charge you for it. This insurance is usually much more expensive than what you could get on your own.

6. **Manipulating Escrow Accounts**: Your escrow account is where money for taxes and insurance is held. Sometimes, servicers might mishandle these accounts, like not paying your taxes on time or messing up the calculations, leading to unexpected increases in your monthly payments.

7. **Misrepresenting Loan Terms**: They might not be clear about the terms of your loan or they might provide misleading information, making it hard for you to understand your rights and obligations.

8. **Robo-Signing**: This involves signing foreclosure documents without properly reviewing them or verifying the information. It’s like they’re just processing foreclosures on auto-pilot without ensuring everything is correct.

9. **Modification Scams**: They might offer you a loan modification but the terms are either not beneficial, or they’re designed to make it more likely that you’ll default in the future.

10. **Ignoring Customer Rights under Servicing Laws**: There are laws in place to protect homeowners, but sometimes servicers ignore these laws. They might not provide you with the required notices or fail to follow proper procedures when it comes to foreclosure. The Consumer Financial Protection Bureau (CFSB) has documented some of these abuses in the past and their article on this can be seen here.

Remember, as a homeowner, it’s crucial to stay informed and vigilant. If you feel like your mortgage servicer is not treating you fairly, it’s important to seek advice and assistance, possibly from a legal expert who understands these issues deeply.

Need help in assessing your case? Does your attorney need our help? Use our services to help guide you through the process early enough to avoid mistakes that can cost you your home in an illegal foreclosure action. Call our office today at 844.583.5339 to inquire if we can help. You can also submit a case statement here and get a complimentary recommendation as to your best course of action.

FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE COMMENTS ON THIS BLOG AND ELSEWHERE ARE BASED ON THE ABILITY OF A HOMEOWNER TO WIN THE CASE NOT MERELY SETTLE IT. OTHER LAWYERS HAVE STRATEGIES DIRECTED AT SETTLEMENT OR MODIFICATION. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.

But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 14 years or more. In addition, although currently rare, it can also result in your homestead being free and clear of any mortgage lien that you contested. (No Guarantee).

Yes you DO need a lawyer.

Tags: lance denha esq., livinglies.me
Posted in Corruption |