Most people fall behind on their mortgage payments because they experience some type of hardship, such as an illness or divorce, and not because they simply did not feel like paying anymore. For this reason, many homeowners who are in fear of foreclosure try to call their mortgage servicer to see whether there are any possible options for them to catch up on their payments and avoid foreclosure. While you may expect your mortgage servicer to want to you to keep paying your loan, it is shocking how many mortgage companies give homeowners the runaround in this type of situation.
There are many ways your mortgage servicer can delay solutions or can cause so much frustration that you may want to give up. If you are seeking a loan modification or any other solution to help you keep your home, your servicer may respond with any of the following:
Requesting Duplicate Documents — Proving hardship and getting approved for a loan modification to prevent foreclosure can require extensive paperwork, including thorough applications and supporting income documentation. Even if you properly gathered all of the information and sent it to your mortgage servicer, the company may come back and request all or some of the paperwork again. Having to resubmit documents can be frustrating and time-consuming and an attorney can help to address concerns regarding loss of documents with your mortgage servicer.
Delays In Application Processing — When you submit your application for a loan modification, you should expect a prompt response; after all, your financial future and home are on the line. Unfortunately, too many companies create unnecessary delays in application processing, which can only increase the chances of foreclosure. The Consumer Financial Protection Bureau (CFPB) requires that a servicer review and respond within five days if an application is received at least 45 days before a foreclosure sale, and a foreclosure defense attorney will be aware of such rules that should be followed by servicers.
Miscommunications Between Departments — In some cases, you may be having difficulty obtaining a loan modification because one department of the mortgage company does not seem to be properly communicating receipt of documents or other developments in your file with other necessary departments. In some serious cases, a homeowner may even have their loan modification approved yet it may not properly go in their file, resulting in another department registering late payments and initiating foreclosure. A foreclosure attorney can help sort out these issues and can even seek relief for you if you experienced unnecessary harm as a result of the mortgage servicer’s error.
The above are only some of the ways that an Elgin, IL foreclosure defense lawyer can help you communicate with your mortgage servicer. Furthermore, Illinois law sets certain requirements for mediation and other clear communications between lenders and homeowners before a foreclosure can take place and an attorney can help guide you through this process. The foreclosure defense attorneys at the Jackson Abdalla Law Group help homeowners in Elgin, South Elgin, St. Charles, Streamwood, and other cities in Illinois, so please call for help today at 773-550-3853.