Mortgage Servicing Abuses
Unfair practices committed by a mortgage lender (and its mortgage servicing agent, who is simply the company who collects the mortgage on behalf of the mortgage lender) against home owners are referred to as Mortgage Servicing Abuses. While some experts may not consider these practices a form of Home Equity Theft, these practices do rob a home owner of some of their money and will pay this money under the threat that they will lose their home if they don't pay. In my view, therefore, it is appropriate to include these practices as Home Equity Theft practices.
An example of this type of Home Equity Theft, as described by the U.S. Federal Trade Commission on their website, is provided below for your information.
After you get a mortgage, you receive a letter from your lender saying that your monthly payments will be higher than you expected. The lender says that your payments include escrow for taxes and insurance even though you arranged to pay those items yourself with the lender's okay.
Later, a message from the lender says you are being charged late fees. But you know your payments were on time.
Or, you may receive a message saying that you failed to maintain required property insurance and the lender is buying more costly insurance at your expense.
Other charges that you don't understand-like legal fees-are added to the amount you owe, increasing your monthly payments or the amount you owe at the end of the loan term.
The lender doesn't provide you with an accurate or complete account of these charges. You ask for a payoff statement to refinance with another lender and receive a statement that's inaccurate or incomplete.
The lender's actions make it almost impossible to determine how much you've paid or how much you owe. You may pay more than you owe.
Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra
Sources (and Links) of Information for today's posts include:
1) Federal Trade Commission:
Home Equity Scams: Borrowers Beware!
2) Atlanta Legal Aid Society:
Schemes to Cheat the Unwary Homeowner: Equity Theft and Title Conversion
by: Karen Brown and Bill Brennan
An example of this type of Home Equity Theft, as described by the U.S. Federal Trade Commission on their website, is provided below for your information.
After you get a mortgage, you receive a letter from your lender saying that your monthly payments will be higher than you expected. The lender says that your payments include escrow for taxes and insurance even though you arranged to pay those items yourself with the lender's okay.
Later, a message from the lender says you are being charged late fees. But you know your payments were on time.
Or, you may receive a message saying that you failed to maintain required property insurance and the lender is buying more costly insurance at your expense.
Other charges that you don't understand-like legal fees-are added to the amount you owe, increasing your monthly payments or the amount you owe at the end of the loan term.
The lender doesn't provide you with an accurate or complete account of these charges. You ask for a payoff statement to refinance with another lender and receive a statement that's inaccurate or incomplete.
The lender's actions make it almost impossible to determine how much you've paid or how much you owe. You may pay more than you owe.
Go here , go here , and go here for posts on questionable mortgage servicing practices. questionable mortgage servicing practices tactics zebra
Sources (and Links) of Information for today's posts include:
1) Federal Trade Commission:
Home Equity Scams: Borrowers Beware!
2) Atlanta Legal Aid Society:
Schemes to Cheat the Unwary Homeowner: Equity Theft and Title Conversion
by: Karen Brown and Bill Brennan
posted by Home Equity Theft Reporter at 9:11 PM
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