Accounting for payments on mortgage loans

13 Jan Accounting for payments on mortgage loans

Mortgage servicers these days seem unable to account for payments they have received or to explain charges they’ve imposed on home loans. Asked any question about their numbers, the lender freezes. Does no one understand what they purport to be doing?

I’m defending several motions for relief from the automatic stay in which the lender claims my client hasn’t made payments. When confronted with proof of payment, they then claim that the money paid was applied to other charges, which they seem unable to explain.

The mortgage servicer’s paralysis has now prolonged several of these cases for months, while opposing counsel searches his client’s payroll for someone who can answer questions.

Remember the day when you assumed that large businesses dealing with money, aided by huge computers, had to be right, and the puny consumer must be the source of the mistake? Now, anytime you scratch the surface of the claims made in the mortgage servicing context, you find confusion, mistakes, ineptitude, and indifference.

Be assertive in challenging servicer contentions that don’t seem “right”. You stand a good chance of being right, if you persist.

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Cathy Moran, Esq.

I'm a certified specialist in bankruptcy law (California State Bar Board of Legal Specialization) practicing in the San Francisco Bay Area for more than 30 years. In addition to practicing bankruptcy law, I train new practitioners at Bankruptcy Mastery.
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