Common Foreclosure & Mortgage Problems
Foreclosure cases often involve more than missed payments. Many homeowners face confusing records, servicing errors, escrow problems, improper fees, or loan modification breakdowns.
Common Foreclosure and Mortgage Issues
Wrongful Foreclosure
A foreclosure may be wrongful if the lender lacks authority, fails to give required notice, uses inaccurate figures, or proceeds despite serious servicing or legal problems.
Mortgage Servicing Errors
Servicing errors may involve misapplied payments, missing payments, incorrect balances, improper fees, or failures to respond to borrower disputes.
Escrow Mismanagement
Escrow problems can create sudden payment increases, unexplained shortages, insurance problems, tax issues, and confusion about what is actually owed.
Force-Placed Insurance
Force-placed insurance may become an issue when the servicer claims the homeowner failed to maintain insurance and adds costly insurance charges to the account.
Misapplied Payments
A payment that is not properly credited can make an account appear delinquent even when the borrower made payments.
Incorrect Payoff Balances
Incorrect payoff figures can interfere with refinancing, sale, settlement, reinstatement, or foreclosure resolution.
Dual Tracking
Dual tracking occurs when foreclosure moves forward while the borrower is also trying to obtain loss mitigation or loan modification review.
Loan Modification Mishandling
Modification problems may include repeated document requests, missing paperwork, unclear denials, trial payment disputes, or foreclosure activity during review.