Servicer-Created "Shifting Platform Of Financial Doubt" May Lead To Unnecessary Foreclosures

In Jacksonville, Florida, a recent editorial in The Florida Times Union touches on the problem faced by many financially strapped homeowners concerning their inability to communicate directly with the acual holder of their home mortgages and their inability to rely on the intermediaries - the mortgage servicers - for reliable information:

• April Charney, a lawyer with Jacksonville Area Legal Aid, is familiar with these scenarios and described some of the key issues: "The net effect to the borrowers is that they stand upon a shifting platform of financial doubt unable to rely upon the servicer for customer service to avoid further debt and expense. This result is driven by the fact that the servicer is conflicted by the layers of padded fees and costs that can be secretly pocketed by the servicer upon the event of the borrower's default.

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• With mortgages sold to a series of servicers, the link between borrower and lender is broken. It seems a basic consumer right to provide consumers with the updated status of their debt.

For more, see Foreclosure: Full disclosure, all the time.

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