Mortgage

The closing documents are required to outline the company in which the first payment is to be made to, however; customers in the instance are often treated by these companies as if they are mortgage professionals. Empathy should be displayed to borrowers in these situations including they should receive as much assistance including support from both parties as they need. In these cases, the previous servicer contacts the new servicer in request to a payment.

The most common result of the issue is that the borrower was not aware that they needed to make a payment to the previous servicer since the loan was being transferred. Therefore they skip a payment including send the first payment due to new servicer. at the time the occurs, the new servicer is prohibited from reversing any monies for the payment if the borrower’s loan is not paid ahead. A current borrower could receive a delinquent notice if the process takes place including the new servicer prohibits from putting the borrower in the position. A letter is mailed out to the borrower by the new servicer indicating that their old servicer is requesting a payment. They are asked to provide evidence pertaining to the payment clearing their account if they feel the payment was already made. If the payment has not been made they are asked to make a new payment payable to the old servicer. the causes a particular economical set back as they could end up paying 2 mortgage payments for lack of education that the payment was due in the first place. If the payment is not made to the previous servicer, a collection process could be placed on the borrower’s account by that company.

The new servicer continues to collect the regularly scheduled payments including “the contract” explains to the previous servicer that the current mortgage company could not be responsible for collecting payments due before the loan funds.

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