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Rotten to the Core: The Business Model of Mortgage Loan Servicers

By October 25, 2019Blog Posts

We represent distressed homeowners who are facing foreclosure or battling mortgage loan servicers while attempting to save their home. As most borrowers know and have personal experience with – the Mortgage Loan Servicing Industry is rotten to the core.

Mr. Cooper, Wells Fargo, JP Morgan Chase, Fifth Third Bank, PHH Mortgage Servicing, PNC Bank, Select Portfolio Servicing (SPS), Specialized Loan Servicing (SLS)–essentially all mortgage loan servicers—make the most money servicing loans that are in or headed for foreclosure.

There are federal regulations that mortgage loan servicers are supposed to comply with when processing loan modification or loss mitigation applications, but many only pretend to comply with these regulations so they can stay under the radar of the regulators. It should be of no surprise that they find ways to frustrate homeowners seeking relief. That’s why we established a system to detect many bad patterns and/or rotten practices that mortgage loan servicers engage in to get around doing what in most cases is best for the investor and borrower of the loan: awarding a permanent loan modification and avoiding the foreclosure of the home.

Make no mistake: Default loan servicing is a mortgage loan servicer’s “bread and butter.” Not only do mortgage loan servicers charge significantly more servicing a loan in default, but it’s important to know mortgage loan servicers typically can only recoup most of their artificial foreclosure costs and fees from the proceeds of a foreclosure sale. Therefore, servicers commonly give most borrowers who are in or facing default the run around.

We’ve seen mortgage loan servicers improperly apply a borrower’s payments, leading to foreclosure. We’ve established a system to call them out on these errors, help borrowers enforce their rights, and whenever possible, save the home.

We’ve seen mortgage loan servicers fail to provide the notice of an upcoming change in mortgage payment resulting with a default even after the borrower continues to pay the amount they thought they owed. We know how to request the information needed to support fighting the error that occurred and help the homeowner get back on track with their mortgage loan

We’ve seen mortgage loan servicers improperly return a borrower’s payment and proceed with foreclosure. We’ve demanded and succeeded in ensuring the error was corrected and assisted the borrower with getting back on track with their mortgage loan.

We’ve seen mortgage loan servicers breach the mortgage agreement and pay the upcoming real estate taxes ahead of time and without notice, causing huge unnecessary escrow fees resulting with an unaffordable mortgage payment that leads the borrower into default. We’ve filed lawsuits in response to that behavior to protect the rights of harmed consumers.

We’ve seen hundreds of different mortgage loan servicing tactics designed to steer a borrower in default to a foreclosure sale instead of modifying the loan when a borrower clearly qualified for a modification. We’ve represented hundreds of borrowers through the loss mitigation process, successfully achieving desired results in most cases.

We’ve seen mortgage loan servicers claim to not have received the documents that were repeatedly sent to them. We’ve demanded they comply with federal regulations and process the application accordingly.

We’ve seen mortgage loan servicers deny a loan modification with no valid denial reason. We’ve investigated the matter and proceeded as each case requires, often achieving the borrower’s desired results.

We’ve seen and counseled countless borrowers seeking refinances, bankruptcy, loss mitigation, loan modifications, short sales, deeds in lieu and borrowers who just want to get rid of the property as quickly as possible.

We’ve assisted hundreds of homeowners and sometimes other attorneys through the loss mitigation process, obtained modifications where the homeowner was denied a loan modification 2, 3, 4+ times prior to engaging our services and were left with no hope. Where borrowers have the ambition and financial means to keep their home, we engage in litigation and/or regulatory Notice of Error procedures that often achieve results that the borrowers were not able to accomplish on their own

We service clients in Cook County and all the collar counties, including DuPage, Lake, Kane, Kendall, Will and McHenry Counties. Don’t go it alone. Schedule a free consultation today and arm yourself with the knowledge and tools that may help you save your home.

And remember: Never Give Up the Land!