How to Correct Mortgage Errors
For years, homeowners have complained that mortgage companies do not adequately address concerns about their loans, do not respond to requests for information, or fail to correct errors. This has become such a problem that federal law now requires mortgage companies to formally respond to any homeowner’s written request when the request alleges the mortgage company:
Failed to accept payments or apply payments correctly;
Failed to credit payments on the receipt date;
Failed to pay escrows as agreed;
Charged unreasonable fees, or without a basis;
Failed to provide an accurate payoff quote;
Failed to timely provide transferring notices; or
Failed to provide assistance to avoid foreclosure.
Homeowners facing problems with their mortgage company have a right to demand the company research their complaint and provide a written answer within 30 days. The company must correct any mortgage error immediately, or it must provide an explanation why it believes the account is correct. It cannot simply mail the homeowner an accounting of the loan, and it cannot charge the homeowner to research the complaint.
Attorney Troy Doucet of the Dublin, Ohio law firm Doucet & Associates Co., L.P.A. regularly litigates mortgage cases on behalf of homeowners. He recommends that homeowners with concerns about their mortgage send a written letter to their mortgage company that clearly identifies the concern, includes supporting documentation, and asks for a formal correction. He cautions that the letter must be sent to the address designated to receive correspondence (not the payment address), and he recommends keeping a copy of the letter sent via certified mail.
The mortgage company must acknowledge receipt of the letter within five days, and respond to concerns within 30 days. Failing to adequately respond to the letter can trigger damages under federal law, including attorneys’ fees. If the letter does not produce the expected results, a knowledgeable foreclosure and consumer attorney should be able to help with the next step. Call (614) 944-5219 to speak with one now.