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Common Cases Involving Mortgage Companies


As you might expect, there are lots of homeowners who contact us with a problem with mortgage companies  When you have an industry in which a) the company you initially choose to work with is almost never the company you end up working with; b) where the mortgage servicers enter into contracts with millions of borrowers (your deed of trust or mortgage) but don’t actually review those contracts in order to understand their obligations; c) and of course where some of the leading mortgage servicers needed a 2008 government rescue, you see mistakes where people get hurt. And that harm can be incredibly severe – homeowners can be robbed of the equity that they have built in the home as well as the future equity they would have obtained. There is also significant emotional strain when the possibility of unfairly losing your home is on your mind and the minds of your family. Our firm is more than willing to dig through the documents, the statements, the policies and procedures, and the ledgers to help you with your mortgage company. Mortgage company cases are complicated, but we are willing to help.

Some repeat fact patterns that we are seeing involving mortgage companies include:

  • If the homeowner has had their rights altered in a bankruptcy, such as with a Chapter 13 bankruptcy or where the homeowner paid off all of the amount owed during the bankruptcy, the mortgage servicers will often fail to note that correctly and will continue to attempt to collect, put incorrect information on your credit, and sometimes try to foreclose again for failing to pay money that wasn’t owed.
  • Anyone dealing with a “reverse mortgage” or “home equity conversion mortgage” where older homeowners receive a mortgage loan that requires no monthly mortgage payments. Unfortunately, any situation in which there are seniors who some believe can be taken advantage and a mortgage product with a marketing scheme such as “you don’t have to make ANY payments,” there are parties who try to take advantage of that.
  • Parties who were foreclosed upon after the bank refused to finalize loan modification paperwork under the Home Affordable Modification Program (HAMP). It is truly mind-boggling how many papers submitted under HAMP get “lost in the mail” by the mortgage servicer.
  • Mortgage servicers not applying payments received properly. Unfortunately, the system is set up such that if a single payment is not identified properly, it can leave the homeowner in collections indefinitely. Similar, some people are being charged late fees on payments made after the mortgage servicer doesn’t apply the funds until after the grace period on mortgage payments expires.
  • People being charged “property inspection fees” when they’ve fallen behind on the mortgage when there is no need for them. If you are in regular contact with your lender, why should you be charged $15/month for a third party to take a picture of your mailbox or your front yard?
  • Incorrect reporting on your credit of your mortgage payments.
  • Having your credit run by numerous lenders who you never gave written consent to pull your credit.

If you are having one of these problems, or any problem with your mortgage servicer, contact our firm at 919.526.0450, email us through our contact page. We handle all cases involving mortgage companies on a contingency basis and can often provide a free consultation where we go over your paperwork and see if there is something we can do to help you.