Pending Foreclosure Due To Lender Screw Up Threatens Massachusetts Homeowner

The Ipswich Chronicle reports that a dispute based on a miscommunication involving an Ipswich, Massachusetts homeowner and the mortgage company who had recently acquired their mortgage loan has resulted in a foreclosure sale being scheduled for August 13. The trouble first started when the homeowner received a letter from their new mortgage company, GMAC, that stated they owed $4,300 on a forced placed insurance policy purchased by GMAC. The homeowner said when the home was purchased a year earlier, it was mandatory that there be an insurance policy in place before they could close on their purchase, and there was one. As far as the homeowner knew, they had made all required payments and were not notified of any problem prior to receiving the $4,300 bill.

The homeowner was then told that it had missed mortgage payments, which her lawyer has since proved were paid all along. The homeowner also said a payment that she made to the company in February of 2006 was actually mailed back to her with no explanation.

How GMAC resolves this matter remains to be seen. For now, the family lives with its life disrupted and with a cloud of uncertainty over their heads. For more, see Family fights foreclosure.