Many homeowners still have a long way to go before the tenant can decide whether or not to grant a loan. In some cases, the server does not tell homeowners that they are missing the documents they need to decide on a loan change. In other cases, the server will not run the program immediately.
The Federal Law on Mortgage Services, dated January 10, 2014, aims to reduce these delays. According to this law, when an attendant receives a loan change request from a homeowner 45 days or more before the foreclosure sale, they must:
Examine the request
Determine whether the request is exhaustive or incomplete, and
Notify the borrower within five days that the application is complete or incomplete. (If it is incomplete, the server must provide the information necessary to complete the request.)
If the service provider receives a complete application more than 37 days before the sale closes, they must review the application and determine if the borrower is eligible to modify the loan within 30 days. However, service providers usually don’t have to look at multiple apps to reduce the damage on your part. But if you take the loan with you after filing a loss settlement, you can reapply.
To inform owners that they must be in arrears with their payment
During financial crises and severe recessions, service providers typically tell homeowners they can’t get change unless they pay late. Sometimes – but not very often – service providers still make this statement. This comment is almost always wrong.
For most change plans, you may be late in paying or simply at risk of being delayed (called “imminent default”) on your mortgage.
Require the owner to resend the information
In some cases, service providers ask homeowners to return and then return information when applying for a loan change. A common scenario involves income confirmation documents, such as pay slips and bank statements, which can quickly become outdated in the eyes of the service provider. If the foreman does not review your submitted documents immediately, the paperwork is voided. The repairer will then ask you to resend your items.
In addition, service providers sometimes require borrowers to resubmit documents after the documents have been lost. If your documents are lost, you will need to resubmit a copy of the data requested by the administrator. But be sure to keep track of when you send it, to whom you send it, and send it in a way that you can keep track of.
Use of incorrect income information when calculating the net present value (NPV) or miscalculation
Sometimes the supervisor makes a mistake when assessing the borrower for a change in loan, which leads to an unreasonable refusal.
What is the NPV calculation?
When a service provider evaluates a borrower before modifying a loan, it reviews financial information about the borrower, the current loan terms, and the fair market value of the property. He sometimes compares:
Federal law requires that if a trial or permanent change to a loan is denied due to the calculation of the NPV, the duty officer must include the entries used in the NPV calculation in the denial notice.
Other regulations related to credit changes
Other types of calculation errors can lead to modification errors. For example, in 2018 Wells Fargo admitted that due to a computer crash it was unable to make changes to nearly 900 mortgages even though they were eligible. The bank eventually confiscated around 500 of these owners.
Failed to change experience to permanent.
Many loan changes begin with a three-month trial program. If you make three payments on time during this time, the change should be permanent – provided you are still eligible to participate.
When a service provider promises to change a suitable loan, homeowners who stand by their side of the contract expect the service provider to keep its word. But sometimes homeowners who pay trial payments cannot ask the repairman to make the renovation permanent.
Failure to review the requestor fulfill the change agreement after the transfer of the service
Transportation services are common in the mortgage industry. In some cases, the new service provider will not consider a previously submitted balancing request or follow a change agreement with the previous service provider.
Federal law requires that if a full mitigation request is pending but has not been assessed, the new service provider must review the request within 30 days of the date of the transfer. The transfer of the service should also not affect the borrower’s ability to accept or reject the loss reduction option offered by the previous service provider. If the new service provider shows up and the time to accept or decline the damage mitigation option offered by the old service provider does not expire on the transfer date, the new service provider must allow the borrower to accept or refuse the offer within the remaining time limit.
Hire a lawyer
Service providers who commit any of the crimes mentioned in this article may require you to:
If your customer service representative commits any of the offenses mentioned in this article or does not properly handle your loan change, you should talk to a qualified foreclosure lawyer, especially if you are facing impending foreclosure. A lawyer will advise what to do in your particular situation. If you have questions about your ability to reduce losses, it’s also a good idea to talk to a HUD-approved housing consultant.
For information on foreclosure defense call us at (877) 399 2995. We offer litigation document review support, mortgage audit reports, securitization audit reports, affidavit of expert witness notarized, and more.