Ducking the Mortgage Servicer 27


delinquent loanSome of the leading mortgage industry experts got together to discuss some of the biggest problems and myths about mortgage servicing. They came up with the top 5 reasons delinquent borrowers try to stay out of touch with their servicers, and they point out why that’s exactly what you don’t want to do.

Do you fall into any of these categories? Check them out and see:

1) If a homeowner can’t bring his mortgage current he figures it’s best if he cuts ties. After all, if he finally talks to them it’ll speed up being foreclosed on.

2) Borrowers just plain don’t trust lenders. So if someone calls claiming to want to help, it can make people suspicious.

3) Mortgage servicers are focused on just one thing: a mortgage. And what a lot of borrowers need is a financial adviser. So if you can’t fix the underlying problem, working on your mortgage won’t help.

What’s important to realize is that servicers do often want to help you out. Even if you can’t bring your account current, it’s worth hearing your mortgage servicer out. Just getting them to put the account back on their books as a “performing loan” is a big plus for the lender and that’s good leverage for you.

So if you’ve been ducking those phone calls, maybe consider answering them. You might be surprised.


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27 thoughts on “Ducking the Mortgage Servicer

  • Cola

    “Even if you can’t bring your account current, it’s worth hearing your
    mortgage servicer out. Just getting them to put the account back on
    their books as a “performing loan” is a big plus for the lender and
    that’s good leverage for you.”

    Actually, your servicer is most likely not your “Lender” and for
    servicers foreclosing is just the primary tool that they use to milk
    every last dime out of a family’s home before it is liquidated. It is
    highly possible that your allegedly defaulted home “loan” has been paid
    off through various insurances, side bets, government bailouts, and by
    other means. Possibly more than once. I am at a loss as to how a
    servicer can benefit from a “performing loan”.

    Pooling and
    Servicing Agreement typically state something like “Servicing Fee Rate is .50% per
    annum.”
    There is no “plus” for getting the loan “performing”. The money
    is made in foreclosure, forced placed insurance, inspection
    fees, expedited doc fees, and assorted nuisance fees.

    Sure, talk to your servicer. Through RESPA/QWR requests and as you would talk to any other third party debt collector (as they claim they are at the bottom of those letters they send you) and use any other
    means to document their bad behavior. Servicers ARE there to help.
    Help themselves to your home that is as well as a very tidy profit
    along the way.

    If the rule of law applied then paying your mortgage after you received an actual loan would make sense.

    Note: the rule of law doesn’t apply and any pressure for a move in that
    direction is relieved by misdirections such as blaming the borrower or
    by political payoffs such as the $25 billion foreclosure fraud settlement Attorneys General got from
    big servicers for their respective states.

    The rule of law is the cure for the mortgage meltdown as well as the rampant rent seeking behavior of all the major “servicers”.