Be careful about refinancing.
You could end up right back with them servicing your new loan and or, heaven forbid, a worse servicer.
There are many servicers competing for the worst mortgage servicer.
Not to mention the costs to you for refinancing. Read your mortgage
contract to find out about prepayment penalties.
Sometimes it is 2 or 3 years from the inception date.
Just another way to set you up to lose more money and keep you contracted to them.
The loan servicer only receives a small amount of money to process your loan payments. Their contract is with the mortgage holder (owner of your loan).
These predatory mortgage servicers get to keep any fees and assessments made against your mortgage. That includes manipulating your loan to appear
that you've made a late payment.
That is step #1. PMI insurance, forced hazard insurance eventhough you have your own insurance, legal fees and charges for other items in the scam. They get to keep that money.
You are not their customer. The mortgage holder is their customer.
You don't have to be a rocket scientist to answer the question, Why me?
What motivates them? In order to receive a lot more money for servicing your loan, they must make mistakes in posting your payments timely by simply holding them before posting them to make the payment appear late.
Or they will make mistakes attributing payments to principal and interest
to make your payment appear short and thus late.
You may find it troublesome for a potential originator to sign off to agree
to include "Best Practices" as an addendum.
They way I see it, you have to protect yourself from these scammers.
Since the mortgage holder does not receive the money from the phoney,
fake, fraudulent assessment and collection of those fees charged against your loan, where's the skin off their nose?
"Best Practices" is specific on what these servicers can pull on you and really it just keeps them from mistreating you in the repayment process.
A person might think this sounds like normal business practices. We expect to be treated fairly and surprised and angry when we are abused.
If you can get "Best Practices" included in your mortgage contract, you have just set up the servicer who wants to abuse you for a breach of contract.
If they abuse you in the ways they typically try, you'll have some legal
We have not yet been particularly successful at stopping foreclosure.
Once they get that first late fee assessment, you are on a fast track for foreclosure and fees and assessments you will not believe remotely possible.
All those fees are tacked onto your loan balance which eats your equity in a hurry.
What these loan servicers are doing should be considered criminal acts against the borrowers. It meets my definition of a racket.
Main Entry: 2racket
Etymology: origin unknown
1 : confused clattering noise : CLAMOR
2 a : social whirl or excitement b : the strain of exciting or trying experiences
3 a : a fraudulent scheme, enterprise, or activity b : a usually illegitimate enterprise made workable by bribery or intimidation c : an easy and lucrative means of livelihood d slang : OCCUPATION , BUSINESS
The days are gone where all you have to do is toss your check in the mail
and forget about it until next month.
In order to even have a chance of keeping their hands out of your pocket, it makes sense to treat them as criminals trying to steal your money long before they even try the scam.
Servicers should not be considered legitimate, ethical, professional or even
competent to handle your payments.
I was with Fairbanks and had 16 out of 18 months where errors of attribution and once instance of them putting my entire payment into a suspense account. They tried every trick in the book to get that late fee assessment on me.
You decide whether it is mathematically probable that a mortgage servicer could make that many mistakes in servicing a regular principal and interest payment alongwith an additional payment to principal.
How do you avoid them on the refi?
Make sure you get a conventional loan.
I suggest you print out a copy of "Best Practices" to be included with the
mortgage documents as an addendum to be signed by both parties.
This can be found in the settlement documents of United States of America v
Fairbanks Capital Corporation.
The problem with the mortgage industry is that it is corrupt from start to finish.
From what I see reported in Mortgage Daily, applications for loans are down
Can it be construed to mean borrowers stand a better chance to call the shots of what goes into a mortgage contract?
Brokers don't care. It doesn't reduce their money as they are paid off the top of the loan when it funds.
Loan originators don't care, they resell the loan sometimes immediately.
The only entity that cares is, of course, the servicer who wants to fleece you.
It is our responsibility to do the best we can to protect ourselves from the scammers. By taking this step, you are putting everyone on notice that you not only expect to be treated honestly, you demand it.