Mortgage servicer changes occur more often than you may think. If you have a mortgage, this could happen to you at any point throughout the life of your loan.
After a mortgage servicer change, issues with loan payments are more common than they should be. There are a variety of causes for issues in mortgage payments after a servicer change. As a homeowner, if your servicer changes, you should be aware of potential issues, especially if you’ve had a loan modification or are in the process of getting one.
If you’ve been keeping up with your mortgage payments but have been told you’re in default by your new servicer, you should consider contacting an attorney immediately. This kind of violation is not only illegal but can cause a lot of damage to your credit score. An attorney may be able to help fix the servicer errors and correct any harm done to you.
Joshua Denbeaux is a trusted foreclosure attorney who has been fighting to protect consumer rights for over 15 years. If you are in need of representation because of mortgage servicer violations, contact Denbeaux Law today to schedule a free consultation.
What is a Mortgage Servicer?
A mortgage servicer is a group or company that you send your mortgage payments to. They also handle any questions that you might have about your mortgage or your loan balance. Mortgage services also provide annual tax documentation and pay third-party costs like taxes or homeowners insurance.
During the term of your loan, your mortgage servicer could pass the servicing of your mortgage to another company, meaning you would have to pay your mortgage to a different servicer. If your mortgage servicer changes, you should be given written notice. There’s usually a grace period where you can pay your previous mortgage servicer and have the payment still count toward your loan.
What Does it Mean to Default on a Loan?
A mortgage is in default when it hasn’t been paid for a period of time between 90 to 120 days. When you default on a mortgage, the mortgage servicer can begin the foreclosure process. This usually begins by sending a homeowner notice that they’re in default.
If you’re up to date on your mortgage payments, you aren’t defaulting on your mortgage, and it’s illegal for a mortgage servicer to begin the foreclosure process if you haven’t defaulted on your loan.
If you are not behind on your mortgage payments but have been notified by your mortgage servicer that you’re in default, you should consult a foreclosure attorney as soon as possible. If you don’t take action early on in the process, defending your rights is often harder and more complex.
How to Avoid or Fix Mortgage Servicer Issues
There’s no way to completely make sure that your mortgage servicer doesn’t make any errors, but there are some proactive strategies you can take to help protect yourself.
Keep Your Records
You should keep records for yourself about your mortgage payments and when you pay, and what the payment amount is. If you and your mortgage servicer agree to a loan modification, you should keep as much of that information as you can. This includes the length of your modification, what your payments are during the loan modification, and your repayment plan after the loan modification term is over.
Should your mortgage servicer try to claim that you’re in default for not following terms, keeping all of this information may help prove that you’re following the agreement. This information will also help an attorney fight your case.
Confirm Your Loan Information
It’s recommended that you regularly confirm your loan information with your mortgage servicer. Part of their job is to be available for questions that you may have about your mortgage, so they should be available to confirm your loan information and the terms of your loan. This is especially important if your mortgage servicer changes.
You should confirm your loan information with your new mortgage servicer as soon as possible. This is an easy way to find out if your new mortgage servicer has the right loan information and any applicable loan modification information before they declare that you’re in default.
One of the most important things you can do for yourself throughout the foreclosure process is to use these practices to set yourself up for success. You may have other foreclosure defense strategies you can utilize to protect yourself from foreclosure.
Contact a Foreclosure Attorney After Mortgage Errors
Issues with mortgage servicer changes are extremely common, but they are important to take seriously. Not only can they be very harmful to you as the homeowner, but they can also be illegal. If you’ve been notified that you’re in default and you think it’s an error, don’t wait until it’s too late.
Schedule a free consultation today to learn more about how Joshua Denbeaux may be able to help you.
