Communication Problems With Loan Servicer Jeopardize Homeowner's Forbearance Agreement, Resulting In Foreclosure Threats

In Jeffersonville, Indiana, The News and Tribune recently ran a column by a local homeowner who, despite entering into a seemingly valid forbearance agreement with her loan servicer, details the mess she's facing due to the subsequent communication problems she's having with the company's different departments, reflecting their apparent inability to handle her situation:

• One collections employee actually offered a quote for this column explaining that, though it might seem the right hand doesn’t know what the left hand is doing, they’re operating on the principle of “prevalence.” I never caught on to what prevalence meant. This guy probably wasn’t authorized to talk to the media. He changed his mind about being quoted and didn’t want to identify himself.

Among the alleged screw-ups is the handling of one payment on her forbearance agreement, which the servicer pocketed and placed in “unapplied funds,” which she describes as those funds they already have, but you still owe.

For the story, see House might be lost in translation.