Servicing Company Loan Complaints on the Rise in California
In 2012, some of the largest banks in the country settled with the federal authorities for $26 billion over accusations of charging erroneous fees and wrongfully evicting homeowners. Now, these same abuses are on the rise among specialty firms known as servicers. These companies are designed to transfer payments from borrowers to lenders, but they also have significant power in determining when homes are going to be foreclosed.
According to a recent CNBC report, servicing companies have grown over the last few years. Emergent companies like Nationstar and Ocwen Financial have grown so fast that they now make up 17 percent of the mortgage servicing market. Many are concerned that these specialized companies could create new issues. CNBC reports that there may be as many stalled modifications now as there were during the housing crisis.
The number of complaints in California regarding mortgage transfers has increased dramatically recently. An official in charge of overseeing the national mortgage settlement says that these companies often over-promise and under-deliver. Her office received 300 complaints about servicing companies in 2013.
It is unclear if servicing companies are doing enough to help homeowners avoid foreclosure. Many worry that servicers benefit from handling foreclosure cases quickly. So instead of offering mortgage modifications, they often push homeowners into foreclosure. Some homeowners have even seen their payments go up after their bank has sold the right to collect payments to a specialty company.
If you are falling behind on your payments, you may be wondering what your options are. Whether you owe money to the bank or to a specialty servicing company, the end results are often the same. It is important that you act quickly to learn about all of the options available. You may be able to fight to stay in your house or to at least put off losing your home as you try to make payments. There are opportunities for homeowners who have been wronged and for those who wish to keep their home. Contact an experienced Orange County foreclosure lawyer at McFarlin LLP to obtain more information by calling (888) 728-0044.Post Tags: