Purchasing a home is one of the more common ways to turn the American dream into reality. After all, not only does a house give you a place to live and raise your family, but it also may help you build considerable wealth. Still, if you are like almost half of Americans, you need to secure a mortgage.
When you make your monthly mortgage payments, you expect the servicer to accept them and apply them correctly. Regrettably, mortgage servicer errors are probably more common than you think. Here are three of them that will give you headaches.
1. Refusing to accept payment
You would think lenders want to accept as many payments as they can. Unfortunately, though, mortgage servicers often place unreasonable restrictions on when and how borrowers may make payments. If you are in default, your servicer may even outright refuse the payments you try to make.
2. Adding unreasonable fees and charges
Assessing fees is part of the reason mortgage servicers may make paying your mortgage difficult. That is, your servicer may try to gain an unfair financial advantage by charging you unreasonable fees. While some fees are probably acceptable in certain circumstances, others may violate your rights as a consumer.
3. Failing to pay taxes and insurance
Part of your mortgage payments undoubtedly goes to paying property taxes and insurance. If your mortgage servicer misses payments or makes incomplete ones, your home may be at risk of non-compensable damage. You may also be in danger of having to deal with a property lien.
Many mortgage servicers intentionally make it difficult to resolve issues. Ultimately, to ensure your servicer behaves legally and fairly, you must understand both your consumer rights and your legal options.