error — that prevents your account from being credited in time could result in you losing your home. The servicer is not allowed to present quotes either verbally or by phone. Ordinarily, federal law requires the servicer to send the payoff statement within seven business days of your request. This does not apply to a reverse mortgage or if your loan is in foreclosure or bankruptcy. Other exemptions include extraordinary circumstances — such as a natural disaster —and delays caused by your failure to follow reasonable requirements (for example, if you send your request to the correct email or postal address). In the event of any of these exceptions, the servicer is still obligated to provide your payoff statement What happens if you spot what you believe to be an error on the reinstatement or payoff quote? You should contact the servicer, law firm, and/or trustee verbally and in writing to notify them of the amount in dispute. Send your servicer a “Notice of Error” letter, which 1) provides them with your name and information needed to identify your mortgage loan account, and 2) describes the error or inaccuracy. If you claim the servicer did not provide an accurate payoff 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 within a “reasonable” amount of time. DISPUTING THE PAYOFF AMOUNT
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