statement after you requested one, the servicer must respond within seven business days. If you claim the servicer improperly initiated a foreclosure or scheduled or conducted a foreclosure sale, the servicer is legally obligated to respond to you before the foreclosure sale date, or within 30 business days after receiving your letter, whichever occurs first. For some errors not related to foreclosure, a 15-day extension is allowed if the servicer informs you of the extension and explains the delay. If the servicer does not respond at all to your Notice of Error, consult an attorney. Your challenge of the quote won’t stop foreclosure proceedings, so consider paying the full amount quoted, and then worry about disputing any errors later, to make sure there are no delays in crediting your account and halting the foreclosure.
MORTGAGE REFINANCING
Depending on your situation, refinancing your loan to stop a foreclosure could be a viable option. This would mean taking out a new loan to completely pay off your mortgage, including your delinquencies. Of course, you’re trading one loan for another, but if you can obtain a lower interest rate, you might reduce your monthly payments. Some homeowners refinance to obtain a different type of loan. For example, they might replace a variable rate mortgage with a fixed-rate mortgage or replace a 30-year mortgage with one that has a 15-year amortization schedule. Unfortunately, if you’re facing foreclosure and have missed or made late payments, you might have difficulty qualifying for a new loan.
Here are some good resources on refinancing your mortgage:
• A Consumer’s Guide to Mortgage Refinancings, available on YouTube as well as in text versions online, provides
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