Many homeowners have experienced difficulties and frustration getting through to their loan servicer when trying to obtain a loan modification. To help alleviate some of the stress associated with this task, an attorney with the National Consumer Law Center in Boston is offering the following tips:
• Consumers should keep detailed written records of every contact they have with their servicer,
including logs of phone calls and copies of written correspondence.
• If the servicer makes a promise, such as crediting a payment, modifying the loan, or stopping a
foreclosure sale, for example, the homeowner must get it in writing.
• When seeking a loan modification, consumers should send a request in writing asking the servicer who owns the mortgage loan. Some banks and investors have policies on which loans they will modify.
• Consumers should beware of servicers advising them to stop making payments because they have applied for a loan modification. Instead, homeowners should continue making payments for as long as possible, even if they cannot make the payment in full. Otherwise, the loan will accrue
more interest, and will cost more in the long run.
• Borrowers who feel they cannot resolve their problem or those who think their servicer may be
violating their rights are advised to contact a non-profit housing counselor or seek legal help.
Housing counselors can help negotiate a loan modification for free.
• Consumers can visit the Treasury’s homeowners Web site http://www.makinghomeaffordable.gov to find out if they qualify for a loan modification under the Obama administration’s program Making Home Affordable.
California Association of Realtor Mortgage Update
Showing posts with label customer service. Show all posts
Showing posts with label customer service. Show all posts
Thursday, August 13, 2009
Monday, June 29, 2009
From the Trenches
Want to know what it's like to be a Realtor these days? Take a look at this New York Times article:
http://www.nytimes.com/2009/06/29/business/29loanmod.html?em
http://www.nytimes.com/2009/06/29/business/29loanmod.html?em
Tuesday, May 12, 2009
Letter from Senator Boxer
Dear Friend:
The Senate recently passed an amendment (SA 1035) I authored requiring that homeowners be alerted within 30 days if their lender sells or transfers their home mortgage loan. The amendment is good news for America’s homeowners.
My amendment provides transparency and gives homeowners another tool to fight illegitimate foreclosures and negotiate loan modifications to help keep families in their homes. Under the measure, if a loan is sold or transferred, the new note holder would have 30 days to notify the homeowner with the following information:
the identity, address, and telephone number of the new creditor;
the date of the transfer;
how to reach an agent or party with the authority to act on behalf of the new creditor;
the place where the transfer is recorded; and
any other relevant information regarding the new creditor.
This is just common sense: If you have a mortgage on your home, you should know who actually holds that mortgage. But too often, homeowners are not able to modify their mortgages to avoid foreclosure simply because they cannot find out who holds their mortgage.
My measure has been endorsed by the National Consumer Law Center, the National Association of Consumer Advocates, Consumer Action, the Consumer Federation of America, Consumers Union, the National Association of Neighborhoods, the National Council of La Raza and the National Fair Housing Alliance.
Sincerely,
Barbara Boxer
United States Senator
The Senate recently passed an amendment (SA 1035) I authored requiring that homeowners be alerted within 30 days if their lender sells or transfers their home mortgage loan. The amendment is good news for America’s homeowners.
My amendment provides transparency and gives homeowners another tool to fight illegitimate foreclosures and negotiate loan modifications to help keep families in their homes. Under the measure, if a loan is sold or transferred, the new note holder would have 30 days to notify the homeowner with the following information:
the identity, address, and telephone number of the new creditor;
the date of the transfer;
how to reach an agent or party with the authority to act on behalf of the new creditor;
the place where the transfer is recorded; and
any other relevant information regarding the new creditor.
This is just common sense: If you have a mortgage on your home, you should know who actually holds that mortgage. But too often, homeowners are not able to modify their mortgages to avoid foreclosure simply because they cannot find out who holds their mortgage.
My measure has been endorsed by the National Consumer Law Center, the National Association of Consumer Advocates, Consumer Action, the Consumer Federation of America, Consumers Union, the National Association of Neighborhoods, the National Council of La Raza and the National Fair Housing Alliance.
Sincerely,
Barbara Boxer
United States Senator
Wednesday, February 4, 2009
New Workout Plan for Delinquent Loans
Freddie Mac has announced a pilot workout strategy for high-risk loans that attempts to use teams of contract loan servicers to match troubled borrowers with the most effective plans to stabilize their higher-risk mortgages.
Freddie says having knowledgeable personnel working with borrowers is key to the program’s success.
"A workout strategy is only as successful as the number of knowledgeable counselors available to answer the phone. Our strategy for high risk loans is designed to help servicers cope with today's unprecedented call volume by directing calls to a specialist with the specific staff and technical resources for handling a high volume of borrowers with these types of mortgages," Ingrid Beckles, Freddie Mac's senior vice president of default asset management, said in a statement.
Ocwen Financial Corp. is one of the first servicers Freddie has selected for the pilot program. Initially, Ocwen will work with an estimated 5,000 reduced-documentation, Alt-A loans from California, Nevada and other states with high delinquency rates. Alt-A loans account for half of seriously delinquent mortgages.
Source: Freddie Mac (02/03/2009)
Freddie says having knowledgeable personnel working with borrowers is key to the program’s success.
"A workout strategy is only as successful as the number of knowledgeable counselors available to answer the phone. Our strategy for high risk loans is designed to help servicers cope with today's unprecedented call volume by directing calls to a specialist with the specific staff and technical resources for handling a high volume of borrowers with these types of mortgages," Ingrid Beckles, Freddie Mac's senior vice president of default asset management, said in a statement.
Ocwen Financial Corp. is one of the first servicers Freddie has selected for the pilot program. Initially, Ocwen will work with an estimated 5,000 reduced-documentation, Alt-A loans from California, Nevada and other states with high delinquency rates. Alt-A loans account for half of seriously delinquent mortgages.
Source: Freddie Mac (02/03/2009)
Friday, August 1, 2008
It's Not Much, But At Least It's Something...
In an effort to try and encourage loan servicers to work with borrowers who are trying to modify their loan payments, Freddie Mac has set up a rewards program for servicers who successfully renegotiate Freddie Mac-owned loans.
Starting today, Freddie is paying servicers the following:
$500 for each repayment plan;
$800 for each loan modification; and
$2,200 for each short sale.
Freddie also will reimburse a servicer the advertising costs involved in telling borrowers about these options. If the advertising results in the borrower contacting the servicer, Freddie will pay the servicers up to $15 per mortgage for leaving a door hanger, and up to $50 per mortgage for knocking on a door.
It's not much, but it's something. And in these tough times, lenders are looking to make every penny they can. So maybe this will be just the incentive servicers need in order to make them more amenable to working with homeowners.
Starting today, Freddie is paying servicers the following:
$500 for each repayment plan;
$800 for each loan modification; and
$2,200 for each short sale.
Freddie also will reimburse a servicer the advertising costs involved in telling borrowers about these options. If the advertising results in the borrower contacting the servicer, Freddie will pay the servicers up to $15 per mortgage for leaving a door hanger, and up to $50 per mortgage for knocking on a door.
It's not much, but it's something. And in these tough times, lenders are looking to make every penny they can. So maybe this will be just the incentive servicers need in order to make them more amenable to working with homeowners.
Sunday, June 29, 2008
Mortgage Payment Fraud Alert
A new scam has started to appear regarding loan payments. As many of you know, when you get a home loan, the loan is often sold to a servicing company. This allows the lender to recoup the money they loaned you and lend it to someone else. Once the loan is sold, you make your payments to the loan servicer, not the original lender.
Recently, some borrowers have been receiving letters informing them that their loan has been sold and they are to send all future loan payments to the new servicer. The problem is, the loan was not sold. So the unsuspecting borrower sends their loan payment to the new address. A couple of months go by and they receive a letter from the real lender telling them that their loan is in default. The borrower tries to contact the "servicer" only to find that they have closed up shop and have moved on to a new state and new name. The borrower now is out the money they sent to the crooks, and has late fees on their loan.
In an attempt to stop this fraud, lenders have set up a protocol for the transfer of a loan. Two letters are now sent - one from your lender telling you they have sold the loan, one from the servicer telling you they are now taking over the loan. If you receive a letter telling you your loan has been sold, you should contact your original lender to verify that they have, in fact, sold the loan.
Recently, some borrowers have been receiving letters informing them that their loan has been sold and they are to send all future loan payments to the new servicer. The problem is, the loan was not sold. So the unsuspecting borrower sends their loan payment to the new address. A couple of months go by and they receive a letter from the real lender telling them that their loan is in default. The borrower tries to contact the "servicer" only to find that they have closed up shop and have moved on to a new state and new name. The borrower now is out the money they sent to the crooks, and has late fees on their loan.
In an attempt to stop this fraud, lenders have set up a protocol for the transfer of a loan. Two letters are now sent - one from your lender telling you they have sold the loan, one from the servicer telling you they are now taking over the loan. If you receive a letter telling you your loan has been sold, you should contact your original lender to verify that they have, in fact, sold the loan.
Tuesday, January 1, 2008
How To Get SERVICE From Customer Service
Most of us pay our home loan every month, never thinking there will be a problem. But on those rare occasions when something does go wrong, there is nothing more infuriating then having to deal with an uncooperative customer service representative. Here are a few suggestions that may help you get the service you need.
First and foremost, you must keep careful records of your conversations and correspondence. When you speak with someone, always ask for his or her name and telephone extension. If you mail something, keep a copy. Help the company help you by having these facts in front of you each time you contact them.
If you don’t get the service you expect, ask to speak with a supervisor.
Remember that the service rep’s job is to “shield” management from your call, so be persistent. You may need to ask for a supervisor three or four times before you are put through. And don’t forget to write down the supervisor’s name and phone number.
Never assume that the company is keeping track of these conversations. During each call, ask the person on the other end to be sure and document the call in your file. Ask twice, once at the start of the call and again before you hang up.
But sometimes calling isn’t enough. You then need to resort to putting your concerns in writing. Wait until you’ve had a chance to cool down. Then go to the top - send your letter to the company’s Chief Executive Officer. Be specific and clear in your letter. Send copies of any relevant documents. Refer to the names of those with whom you’ve spoken and the dates the calls were made. Be clear as to what you want the CEO to do.
You will probably not hear back directly from the CEO. But that’s OK. You want the CEO to contact the department that has made the error. If anything is going to get a response, it’s a call from corporate headquarters.
If all else fails, contact the regulatory agencies that oversee your lending institution. The easiest way to do this is to ask the lender; they are required to tell you.
I hope you never need to make use of these tips. But if you do, they may help you get the service you deserve.
First and foremost, you must keep careful records of your conversations and correspondence. When you speak with someone, always ask for his or her name and telephone extension. If you mail something, keep a copy. Help the company help you by having these facts in front of you each time you contact them.
If you don’t get the service you expect, ask to speak with a supervisor.
Remember that the service rep’s job is to “shield” management from your call, so be persistent. You may need to ask for a supervisor three or four times before you are put through. And don’t forget to write down the supervisor’s name and phone number.
Never assume that the company is keeping track of these conversations. During each call, ask the person on the other end to be sure and document the call in your file. Ask twice, once at the start of the call and again before you hang up.
But sometimes calling isn’t enough. You then need to resort to putting your concerns in writing. Wait until you’ve had a chance to cool down. Then go to the top - send your letter to the company’s Chief Executive Officer. Be specific and clear in your letter. Send copies of any relevant documents. Refer to the names of those with whom you’ve spoken and the dates the calls were made. Be clear as to what you want the CEO to do.
You will probably not hear back directly from the CEO. But that’s OK. You want the CEO to contact the department that has made the error. If anything is going to get a response, it’s a call from corporate headquarters.
If all else fails, contact the regulatory agencies that oversee your lending institution. The easiest way to do this is to ask the lender; they are required to tell you.
I hope you never need to make use of these tips. But if you do, they may help you get the service you deserve.
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