04 Jan Prevent Foreclosure Dallas -Top 10 Mortgage Servicing Scams
TOP 10 MORTGAGE SERVICING SCAMS-
Know what to look for to prevent foreclosure Dallas
We all like to believe that mortgage companies conduct business above board. Unfortunately, that isn’t always the case. Loan Companies find numerous ways to rush foreclosure or generate fees at the detriment to the homeowner. If you want to prevent foreclosure Dallas, it’s important to be aware of the potential scams you could face.
If you know what to look for, you may be able to prevent foreclosure Dallas. Here are the top 10 Mortgage Servicing Abuses.
- Dual Tracking- Numerous Homeowners who are actively working with their mortgage company to prevent foreclosure Dallas are surprised to discover that their bank is also “actively” pursuing foreclosure.
- Zero Communication- When a mortgage company believes a customer is late on their mortgage, they are required to contact the homeowner. Sometimes they don’t. Sometimes the homeowner doesn’t even know their house is facing foreclosure until after the Sheriff’s Sale.
- Misapplied Payments- Sometimes, even when a payment is made on time, the servicer rejects the check or applies it to the wrong account. This means late fees, penalties, and possibly even foreclosure.
- Late (or Early) Payment of Taxes and Insurance- Most Mortgage Companies require a managed escrow account for taxes and insurance. However, just because they have it, doesn’t mean they manage it. When the mortgage servicer fails to make payments on time, you’re stuck with the penalties. On the other hand, if your lender decides to pay your taxes early, you could be stuck with a negative escrow balance allowing them to add hundreds to your monthly mortgage payment.
- Blocked Refinancing with A Different Lender- In efforts to keep the steady stream of revenue flowing from your monthly mortgage payments, some loan servicers neglect to provide payoff information, prevent refinancing, and even home sales.
- Illegal Fees- Some Loan Servicing companies have been known to illegally charge for property monitoring, Broker Price Opinions (BPO), and Appraisals.
- Force You to Give Up Your Legal Rights- Loan Servicers often include “waivers” in their Loan Modifications which basically requires you to agree that you give up your right to pursue any legal actions no matter what unethical acts they commit.
- “Fast Forward” Foreclosures- There are state laws governing the entire foreclosure process steps and timeline. In the rush to foreclose, some companies ignore these required steps.
- Illegal Foreclosures- Sometimes, a Loan Servicer will begin foreclosure proceedings even when the homeowner is current on his mortgage payment.
- “Robo-signing” and fraudulent documents- Often Mortgage Companies don’t have accurate ownership records, mortgage payments or escrow accounts that would enable legal foreclosure. As a result, they’ve been known to falsify these documents in order to foreclose.
Hopefully, if you’ve been victim to any of these scams, you may be able to prevent foreclosure Dallas.
Please note, that we are not attorneys or giving legal advice. We’re just experienced Real Estate Investors who are familiar with the options available to prevent foreclosure.
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