Check out some similar questions!

chiquita_bandita · Jun 21, 2007, 11:52 PM

I read the posts about debts and collections, and I am still a bit unclear... is a mortgage company considered a debt collector? If it matters, my mortgage is not with the original lender, it has changed hands 3 times, but contract is the same since day 1.

Does my mortgage company have to furnish me with a YTD breakdown of payments, where the payments were applied and when, and verification of extra debts from outside agencies contracted by mortgage company? If so, am I entitled to a copy of the original invoice from said outside agency and not just a type-up from my mortgage company? So far I am being refused all of these things.

Also, can I request a debt be verified if I have not been physically mailed a bill, just told of fees over the phone?

mr.yet · Jun 22, 2007, 03:42 AM

Request in writing a complete accounting of this account, showing prinical and interest charges on the account.

If they fail to comply, file a writing complaint with the banking commission in your state. Also The BBB

ebaines · Jun 22, 2007, 06:49 AM

Your mortgage company should provide you with a statement of escrow account activity at least once/year. This would show in detail who they have paid, and when. Typically this would be for real estate taxes and (in some cases) home owner's insurance. Are these the debts you are referring to? Additionally, you should also be receiving statements directly from both your local tax authority and your insurance company detailing how much is due and when. Is there some other "outside agency" that your mortgage company is sending your escrow money to?

Fr_Chuck · Jun 22, 2007, 07:27 AM

If you are asking, if they don't provide proof of debt, is the debt still valid, like it works with credit card debts to collection agencies and the such. The answer is no, since you already have proof of the debt, it is called the mortgage which is placed on the property at the court house.
So the deed will not be clear until this mortgage is released,

It is common for certain level of lenders to sell and resell mortages. Sometimes your original lender merely loaned the money with the idea of selling it to another firm shortly afterwards. And three sells is not totally uncommom esp with a higher interest rate on a loan, or on ARM's where the interest rate will increase greatly as the loan goes on.

Normally you will just get a notice that this debt has been purchased and that you will now be paying... at... addresss.

If you doubt this is true, you contact the old mortgage company and ask if they have sold the debt to the new company. No you do not get a new mortgage contract, since they have merely purchased the one you have,

Mortages are a finicial instrument and can be bought and sold.

ScottGem · Jun 22, 2007, 07:57 AM

My question is why is this an issue? Are you being threatened with foreclosure? Do you dispute your prinicpal balance or what?

If you have a fixed rate mortgage, then the lender (or servicer) is not required to send you any statements. You know what your monthly payment is and when its due. Monthly statements are a convenience not a requirement. This is generally true of any fixed payment loan.

If you are disputing the principal balance, then you can request and are entitled to receive an accounting of each payment and how it was applied.

Please respond and give us more details so we can help further.

chiquita_bandita · Jun 22, 2007, 10:16 PM

This is an issue because my mortgage company had applied 2 payments incorrectly and late. I have proof of the date and time I sent the payments as I did it by an electronic transfer, and have phone records to show I immediately called to confirm the payment (twice on the second occasion, just for extra measure). This incorrect application of my payments has caused me fees and trouble. An increase in my taxes this year (due 1/08) has also caused trouble. This is why I want a YTD statement, which I am willing to pay for if that's what it'll take to get one. I am having trouble getting one, and simply wanted to know if I had a right to a statement, or if not a right, if it's a common thing to ask for and why my request is being ignored. It just seems strange that they are so unwilling to give me one.

To sum it up quickly, the mortgage company is charging me for the -outside services of- a lawyer as well as an appraisal(? No clue about why/when/if this was even done) and a few other fees. I simply want verification of this debt. I have not seen a bill, just been quoted over the phone. The amount varies, both up and down, so this is why I want proof.

I am simply asking if I am owed a full explanation of this debt. Do they have to show me a bill from these companies if I challenge the validity?

I do not doubt that they used the services of the lawyer, I have spoken to the law office and attempted to get a bill from them. They refused, and said I need to get it from the mortgage co. Mortgage co says no when I ask for the bill, claim they don't have that information. That can't be true, and if it is, how on Earth are they charging me for it if they have no bill?

No, I am not in default or foreclosure. I fear I could be if I can't get this straightened out, and really need to know my rights here.

ScottGem · Jun 23, 2007, 05:56 AM

That helps us help you.

First, Were your payments by electronic transfer or by payment from your bank. My bank offers online bill payment. Many merchants can be paid by EFT, but some the bank will send a physical check to. Even where there is an EFT issuance, does your bill pmt service have the correct information for your mortgage servicer?

If the funds were electronically transferred to the correct place then you should get any late fees credited.

Next, what are these "outside services" for? Were these services performed during a refi or the original financing? If so, you should have gotten documentation at the closings. Otherwise, I see no reason for an attorney or appraisal.

If the bank won't give you an accounting, then go to your state's banking dept. They can help you get what you are entitled to.

Fr_Chuck · Jun 23, 2007, 05:57 AM

1. No the mortgage company can not chare you any additional fees not listed in your original mortgage, If this was from the original loan you took, those fees should have been listed on the original mortgage.

If they are from selling or buying your mortgage, you do not pay those,

You have the right to challenge fees not listed in your contract, if not in the lending documents, you may refuse to pay any of them.

I would spend 100 dollars and pay an attorney to write them a letter demanding this.

We went though something similar with my wife's mother, she got a loan from one of the preditor lenders, who sold it about 4 times, and they tried to change terms, late fees and so on. Often ( and this may not be your case) these are lenders that do higher risk loans at high interest rates and most are little better than loan sharks in the back of pool rooms.

chiquita_bandita · Jun 23, 2007, 08:01 AM

Thank you for all the help. I think what I will do is get a lawyer to handle this, because I feel I will get nowhere with this company. I really don't need this stress, and you're right, Fr_Chuck, it would be totally worth it to pay a lawyer. I'll bet he handles in 2 minutes what I've been trying to do for 2 months!

rfarmer · Jun 24, 2007, 05:50 PM

Is the lender that has your mortgage now, not receiving the money or is it going to the old lender? Call the new lender to make sure the electronic transfer is going to them. It's a common practice for loans to be sold to other investors (lenders). No there would'nt be any fees associated with the transfer of your loan to a new lender. Very peculiar