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 inwriting 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 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,
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