Fair Treatment is the Law
Filing Complaints against Abusive Loan Servicers
When a borrower purchases a home, the company lending the money does not always hold and service the loan until it is paid off. Mortgage companies have the right to sell loans as well as the rights to service them.
If your lender sells the rights to service your loan, your mortgage servicer is then responsible for collecting monthly payments, posting them to your account, and handling tax and insurance payments.
The Best Practices standards recently set out in a Federal Trade Commission settlement with Fairbanks Capital Holding Corp. states that borrowers have a right to be treated fairly. Mortgage servicers may not:
- Count your on-time payments as late and then assess illegal late penalties.
- Neglect to make on-time payments of taxes and insurance from escrow accounts.
- Force borrowers to buy a second hazard insurance policy at inflated premium costs if borrowers have valid insurance coverage.
- Report false information about their delinquencies to national credit bureaus, thus, ruining borrowers credit ratings.
- Decline to tell homeowners how much they owe and when it s due.
- Intimidate or harasses customers who are behind on their payments
- Refuse to respond to borrowers complaints or requests for information.
- Refuse to work out delinquencies using loss mitigation tools.
- Stampede homeowners into quick foreclosures.
- Force customers to waive their legal rights as the price of avoiding foreclosures.
Mortgage Trouble? Don't Delay, Call Today.
State Housing Department Offers Free Assistance Hotline; Links to Counseling Agencies
Fred Karnas, Director
Arizona Department of Housing
The Arizona Department of Housing has established the Arizona Foreclosure Help Line at 1-877-448-1211 (toll-free). This free service is available to anyone seeking guidance regarding foreclosure. Trained personnel will refer you to an Arizona-based counseling agency that can provide help.
It is important to know your mortgage rights. Find your loan documents and read them so you are aware of what your lender may do if you can t make your payments. You should also be sure you understand foreclosure prevention options. Additional information about foreclosure prevention (also called loss mitigation) options can be found on the internet at www.fha.gov.
The Arizona Foreclosure Help Line at 1-877-448-1211 (toll-free) will refer you to housing counselors who will provide you with information for free. These housing counselors can help you understand the law and your options, help you organize your finances and represent you in negotiations with your lender if you need this assistance.
For additional information, please visit the Arizona Department of Housing website, www.housingaz.com.