Mortgage Servicing Abuse
Your mortgage servicer is the company that collects and handles all transactions on your mortgage account on a day-to-day basis. Abusive servicing practices can have a lasting and devastating impact on borrowers. A single error by a mortgage servicer will often have a domino effect, leading to more errors that ultimately threaten a borrower’s home. Our attorneys have extensive experience litigating federal claims related to mortgage servicing abuse. We have handled the following types of mortgage servicing abuses:
- improper allocation of payments;
- wrongful foreclosure;
- charging of unnecessary fees and interest;
- charging for force-placed insurance;
- not honoring an agreement with the prior servicer;
- not responding to qualified written requests;
- not properly investigating qualified written requests; and
- stonewalling borrower efforts to modify or reinstate a mortgage.
If you believe you have been the victim of abusive mortgage servicing practices, our attorneys will meet with you at no charge to discuss your potential case. If we take your case, we will handle it on a contingency basis, and you will not be required to pay our attorney’s fees unless we settle your case or obtain a judgment on your behalf.
Have your mortgage payments been improperly applied or your loan wrongfully placed in foreclosure?
If your mortgage servicer mistakenly treats you as behind on your mortgage, you may be charged for unnecessary interest and fees and could face the wrongful foreclosure of your home. In such cases, we have observed mortgage servicers stonewalling borrower efforts to correct payment allocation errors in their account. This may be because servicers profit from fees charged to your account and through the foreclosure process. Our attorneys have successfully litigated cases involving such abusive servicer practices. If you believe your mortgage servicer is wrongly treating you as behind on your mortgage, please call us, and one of our attorneys will discuss your case with you at no charge.
Has your mortgage servicer charged you for force-placed insurance even though you have your own insurance policy?
A servicer is generally not permitted to obtain force-placed insurance for your property unless there is a reasonable basis to believe the borrower has failed to maintain property insurance. Additionally, before obtaining force-placed insurance, a servicer must provide the borrower with written notice and an opportunity to provide proof of insurance. If you believe your mortgage servicer has wrongly obtained force-placed insurance on your property, please call us, and one of our attorneys will discuss your case with you at no charge .
Is your mortgage servicer stonewalling your efforts to modify your mortgage?
Even though a loan modification may be the best solution for both the borrower and the mortgage investors, mortgage servicers--who profit from foreclosures--are not incentivized to facilitate a loan modification. We have seen cases where servicers have appeared to stonewall home loan modification applications by repeatedly claiming that the borrower failed to provide supporting documentation even though the borrower provided all of the requested documents. We have also handled cases where a borrower was denied a permanent modification after successfully completing a trial plan. Federal law provides necessary protections for distressed borrowers seeking home loan modifications. Our attorneys have extensive experience litigating claims involving such mortgage servicing abuse.