How to avoid common mortgage problems

by Property Management Software on November 12, 2015

Common mortgage problems

Common mortgage problems

In June, the Consumer Financial Protection Bureau (CFPB) launched an enhanced version of its database of consumer complaints about financial companies—mainly lenders, banks and credit card issuers. Nearly 8,000 complaints were posted, a tiny fraction of the 627,000 complaints it has fielded since 2011. Of those, more than one-fourth were from mortgage borrowers, revealing a bottomless pit of frustration with lenders and servicers. If you have a complaint, the CFPB can help. Meanwhile, we offer advice on seven recurring issues that bedevil borrowers, according to the complaint files

1. I made a mortgage payment, but the loan servicer says it didn’t receive it. I’m afraid this will lower my credit score.

Time and the rules are on your side. Your lender won’t report a late payment  to the credit-reporting agencies until 30 days after the due date. And many lenders provide a grace or courtesy period of 10 or 15 days after the due date before they impose a late fee. In the meantime, if the lender can’t track down your payment, send an “error notice” via letter with your identifying information (don’t write on a payment coupon) to the postal or e-mail address that is specified on the servicer’s Web site, on your monthly statement or in your payment coupon book. In most cases, the lender must acknowledge receipt of your correspondence within five business days and resolve the issue within 30 days, with the option of a 15-day extension if it explains the delay. For 60 days after it receives an error notice, it can’t ding your credit by notifying the credit agencies. But continue to make your future mortgage payments on time.

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