Mortgage And Borrower Inconveniences

The closing documents are required to outline the company in which the first payment is to be made to, however; customers in this instance are often treated by these companies as if they are mortgage professionals. Empathy should be displayed to borrowers in these situations and they should receive as much assistance and support from both parties as they need. In these cases, the previous servicer contacts the new servicer in request to a payment. The most common result of this issue is that the borrower was not aware that they needed to make a payment to the previous servicer since the loan was being transferred. Therefore they skip a payment and send the first payment due to new servicer. When this occurs, the new servicer is prohibited from reversing any monies for this payment if the borrower’s loan is not paid ahead. A current borrower will receive a delinquent notice if this process takes place and the new servicer prohibits from putting the borrower in this position. A letter is mailed out to the borrower by the new servicer indicating that their old servicer is requesting a payment. They are asked to provide evidence of the payment clearing their account if they feel the payment was already made. If the payment has not been made they are asked to make a new payment payable to the old servicer. This causes an economical set back as they will end up paying two mortgage payments for lack of education that the payment was due in the first place. If the payment is not made to the previous servicer, a collection process will be placed on the borrower’s account by that company. The new servicer continues to collect the regularly scheduled payments and “the contract” explains to the previous servicer that the current mortgage company will not be responsible for collecting payments due before the loan funds.