FAQs

Whenever your mortgage servicer makes a mistake, the best thing to do is to send them a Notice of Error (NOE) letter under the Real Estate Settlement Procedures Act (RESPA). You can also send a Qualified Written Request (QWR) for information under RESPA if you are not sure what is going on. The best thing to do is send a letter that explains the issue from your point of view, and requests correction or an explanation of what is going on. Your mortgage statement should have an address to send NOE/QWR letters, or you can find it on the servicer’s website. It is important that you send it to the right address, you cannot just stick it in with a mortgage payment for example, and include your address and loan account number. Otherwise, you do not need to include any particular legal language, just your clearest explanation of the error or information you need.

The mortgage servicer will usually respond because they are legally required to do so. But that does not mean they will fix their error or supply the requested information. If there is no response, or the response does not make any sense, then you should send another RESPA letter explaining that. If the mortgage servicer still does not fix the problem, then you may need to see a lawyer. The advantage of the RESPA letter is that, if the mortgage servicer fails to correct the error, then it will be responsible for your attorney fees. If you have a good RESPA letter, and a bad (or no) response from the mortgage servicer, then there are consumer rights attorneys who will likely take your case on a contingent basis, meaning you do not have to pay to sue the mortgage servicer.

Absolutely. But also send the RESPA letter unless you are confident the problem is being fixed over the phone.

You are responsible for the cost of your insurance. But the mortgage company may be liable for damages you suffer if it fails to do something it is supposed to do.

Banks and mortgage servicers make mistakes all the time. And calling their customer service representatives can be frustrating. It is important to begin documenting the problem in writing as soon as it becomes apparent that the problem may not be quickly resolved. Sending your mortgage servicer a RESPA letter requesting correction of the error is a good first step.

A suspense account is where a mortgage servicer puts money that it does not otherwise account for. For example, if your mortgage payment is short, i.e. you make it for less than the full amount due, the servicer might cash the check and put the proceeds into “suspense” while it is waiting for you to send in the balance, instead of applying it to your monthly payment. Many mortgage servicing errors involve holding your money in a suspense account instead of applying it to your loan.

If you have made your mortgage payments, but still receive a foreclosure notice, then something is seriously wrong. Yes, you can save your house. But things can get ugly very quickly. You should contact a lawyer in your state who specializes in consumer lending, mortgage servicing, and foreclosure defense.

No. You have the right to choose your own property insurance provider.

A class action may be an effective way of pursuing a claim that is not valuable  enough to support an individual lawsuit.

Whether you are responsible for a particular fee is a complicated question that depends on your contract with your lender and may involve consumer protection laws. You should contact the lender and try to understand what it claims the fee is for. If it is a mortgage servicer, you should send a RESPA NOE/QWR letter as described above. If you cannot get the situation resolved, you may need to contact a lawyer in your state who specializes in consumer lending.

If you have suffered significant damages, such as the inability to get a mortgage, as a result of a credit reporting error you should contact a lawyer right away. Where you disagree with something on your credit report, the Fair Credit Reporting Act (FCRA) provides you with important rights. California has its own credit reporting law called the Consumer Credit Reporting Agencies Act (CCRAA). They have different requirements, but the best first step is to report your dispute to each of the three credit reporting agencies (Equifax, Experian, and TransUnion) that have the disputed or erroneous information on their reports.

If a big business is engaging in false advertising about important features of its products, a class action is a good way to get justice for yourself and other people who may have been victims of the same practices. California has important laws that can help consumers in these situations. The California Consumer Legal Remedies Act (CLRA) can help establish a claim if you give the business written notice of the problem and demand they cure it. The California Unfair Competition Law (UCL) is California’s main law against unfair business practices. But depending on the subject matter there may be other laws that apply.

If a big business is engaging in false pricing of its products, a class action is a good way to get justice for yourself and other people who may have been victims of the same practices. California has important laws that can help consumers in these situations. The California Consumer Legal Remedies Act (CLRA) can help establish a claim if you give the business written notice of the problem and demand they cure it. The California Unfair Competition Law (UCL) is California’s main law against unfair business practices. But depending on the subject matter there may be other laws that apply.

A reverse mortgage uses the equity in the home to pay the mortgage and provide cash to the elderly borrower. You can still inherit the home, but it will not have the equity that your parent had before the reverse mortgage, meaning you will have to get a loan and pay off the reverse mortgage. There are a variety of types of reverse mortgage, and depending on the type, the home may have no remaining equity at all.

Your parents may have a case for realtor malpractice, fraud, and financial elder abuse if your parents are elderly. Realtors owe their clients a fiduciary duty to behave honestly and disclose any material facts that might affect their decisions about selling a property, including how much to sell it for. When a home is sold without marketing, it is very suspicious unless the sellers requested that it happen this way.  Unfortunately, with the steep rise in real estate prices recently, there are unscrupulous real estate agents preying on elderly homeowners. If you suspect foul play, you should contact a lawyer who specializes in real estate fraud and elder abuse.