Could Loan Servicing Error Cause a Foreclosure?
Facing a foreclosure is stressful; you are in danger of losing the property you worked so hard to purchase. Of course, there are a host of reasons why you may find yourself in this situation, especially when you live in Florida. Falling ill, changes in employment and even rising homeowners insurance rates can all result in your falling behind on your mortgage payments triggering legal action. But what if you were not at fault? Could errors by your loan servicer actually cause a foreclosure? Unfortunately, the answer is yes.
Types of Mortgage Errors Lenders Make
Not Every Mistake Is the Same
Purchasing a home requires teamwork. The players must include both a buyer and seller, who may also be joined by real estate agents, attorneys, and, if not a cash purchase, a mortgage lender. Of course, as the buyer you identified professionals you believed to be reputable and who would provide quality service, but even under the best of circumstances, mistakes can happen.
Sadly, errors by your mortgage lender can result in foreclosure.
The most common mistakes these professionals and institutions make include:
- Neglecting to pay property taxes (at all or on time) from funds provided by the property owner
- Communication breakdowns with regard to missed payments
- Incorrectly paying taxes or property insurance from an established escrow account
- Erroneously inflating escrow payments
- Not implementing a reasonable and properly requested loan modification
- Misappropriating mortgage payments.
It is important to recognize that you do have recourse when your lender’s errors trigger the foreclosure process, but identifying, proving, and managing the process to resolve the issues can be complicated. Working with an experienced Florida foreclosure attorney can be incredibly beneficial. This is not a process you should embark upon alone.
How to Dispute a Mortgage Error
Take Control of the Situation
When your mortgage company makes a mistake that impacts your property ownership, you have every right to be anxious. Addressing these issues can be overwhelming; after all, you are concerned about losing your home.
While your first course of action should be to reach out to the loan servicer on your account, you may wish for some professional guidance prior to making contact. A seasoned foreclosure attorney can review your situation and share the best way to proceed.
In all cases, it is best to communicate with your lender in writing, at minimum, via email; doing this provides you with a paper trail of all discussions. If you have a telephone conversation, immediately documenting it with a follow-up in writing is wise. Misunderstandings that occur over the phone can often be avoided when concerns and responses are in writing.
What if the Lender Denies Making an Error?
In some cases, the lender’s error may be easily rectified and your problem solved; you will no longer be facing foreclosure. But other instances can be more complicated (for example, misapplied payments), and additional work may be required to right the wrong. In still other instances, the lender may not own up to making an error, meaning you have to pursue the issue further.
If you find yourself facing an uncooperative lender, you should reach out to an experienced foreclosure defense attorney for assistance.
This professional can review all aspects of your specific situation and the mortgage servicing error and help identify exactly what went wrong. Using this information, he can build your foreclosure defense, helping to protect you, your property, your reputation, and your financial well-being.
In all cases, addressing issues right away is of the utmost importance. When it comes to mortgages and foreclosures, time is incredibly valuable. You want to take action immediately and not wait for things to sort themselves out. To be honest, they rarely do.
The Threat of Foreclosure Is Serious
Engaging a Florida Foreclosure Defense Attorney
If you are concerned about a possible foreclosure on your property, consulting with a reputable mortgage errors attorney who understands the intricacies of foreclosures in Florida is the first, and perhaps most important, thing you should do. The reasons behind foreclosures are numerous — and they are not always the fault of the property owner.
When a lender error is the cause of a foreclosure action, managing the situation can be difficult. The laws governing foreclosure in Florida are complex; as a layperson, you simply don’t have the knowledge and experience to positively affect the situation.
The property you own is likely your greatest asset; protecting it and your financial reputation should be your primary concern. Don’t hesitate to get the help you need to do both appropriately.
Carlos M. Amor Can Help Resolve Your Issues with Your Lender
With more than 15 years of professional experience, Carlos M. Amor is well-versed in building successful foreclosure defenses, including those based on lender error.
As a licensed real estate broker and real estate foreclosure attorney, Mr. Amor understands both the laws governing foreclosures and the mistakes that lenders make. He has a reputation for providing his clients with the high-quality service they require and is well-known for his compassionate and responsive communication style. He recognizes the stress his clients are under and works tirelessly to help them resolve their problems.
Because he understands how personal foreclosure cases can be, he offers all potential clients a free consultation via the medium of their choice (in person, on the phone or via video conference). Mr. Amor recognizes that every individual has time constraints, and he is ready and able to work within them in the way that best meets their needs.
If you are facing foreclosure and believe a loan servicing error is the cause, reach out Carlos M. Amor today at 954-453-7200. He is ready to meet with you immediately and discuss how he can help.
ATTORNEY CARLOS M. AMOR
Carlos M. Amor is a skilled and experienced attorney and real estate broker. His legal practice in South Florida focuses on real estate litigation, real estate investments, tax deed and foreclosure auction purchases, traditional real estate transactions, short sales, foreclosure defense, and civil litigation. Carlos thinks “outside the box” and takes a practical approach to finding solutions that benefit his clients. [ Attorney Bio ]