Sometimes, we hear from clients who are confused and worried about their mortgage payments having been misapplied somehow. They’re sure they paid the right amount on time, but the mortgage servicer shows a delinquent account. When these clients reach out to our Mortgage Default Housing Counselors, they investigate together to find the cause of the problem and correct it as soon as possible.
One such example was J., who had great credit and always made her payments on time. Despite this, she kept receiving Notices of Pre-Foreclosure Options, and became very worried. Her Counselor, Sue, called her lender and found that 5 of J.’s payments had been applied to the wrong loan number. The servicer did correct two payments, but they kept misapplying the payments and randomly correcting them so that J. could never be assured that her payments were going to her mortgage account.
By working with a helpful representative from the servicer, Sue and J. were able to repair J’s credit, reverse all late fees and correct her 1098 tax statement. The servicer would also need to straighten out the situation with the homeowner for which J.’s payments had been applied for 5 months, which was a mess in and of itself. J. is concerned for the welfare of the other homeowner, and has lost trust after her experience with her servicer and so will be filing complaints with the Department of Financial Institutions, the Attorney General’s Office and the Consumer Financial Protection Bureau in order to prevent this kind of situation from impacting other homeowners in the future.
A resourceful advocate with the right experience and knowledge to act on a homeowner’s behalf to solve a problem like this is an amazing gift, and we are proud to be able to provide our services to all Washington residents.