Legal Question in Credit and Debt Law in New Jersey
mortgage loan servicing error
Our mortgage loan was transferred with an in-place forebearance repayment plan to a new servicer. The 18 month repayment plan included the regularly scheduled PITI, plus an additional amount calculated to amortize the arrearages.
Once we completed the 'plan' our account was to be current. The new servicer has failed to correctly allocate our payments, and says that we owe them about $8,000 in past due ESCROW payments, which is incorrect. We have tolerated all their notices, threats, and now are faced with foreclosure because they refuse to consider our proofs which include a spreadsheet of payment activity from day one, cancelled checks, etc.. The problems occured when the new servicer took over and failed to correctly attribute payments per the forebearance plan.
Their response is one of absolute denial. Is there a supervisory agency (other than foreclosure court) that can resolve this ESCROW dispute?
1 Answer from Attorneys
Re: mortgage loan servicing error
Unfortunately, you will probably be faced with fighting this out in the Courts. Fortunately, however, it looks like you have documented this very well, so that you will have a good defense to their foreclosure, if they file it. It seems to me, however, that if your proofs are well documented, you should be able to get someone to sit up and listen well before you are forced to prove this in Court. The mortgage company will need to get an attorney to file the Foreclosure Complaint. Once it gets to that point, you (or your attorney) should be able to get the company's attorney to review your proofs and perhaps it will settle at that point. I would suggest that you may want to get an attorney at this point to review your documentation with you and then put together a well organized letter to the mortgage company and to their attorney to perhaps cut this off before the foreclosure proceeding moves too far along. If you want me to assist you, feel free to call my office at 856-546-8010. Good luck!
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