• Home
  • /
  • Blog
  • /
  • Your Loan Has Been Sold… Again!
August 29, 2007

You just received notice that one of your loans will be serviced by a new company – the third in 2 years. Many of you know how aggravating it can be dealing with loan servicing companies, particularly when the newest servicer has incorrect records.

Your rights are governed by a federal law known as “the Real Estate Settlement Procedures Act” (RESPA). If you have questions or problems with the servicing of your loan, the servicer is required to respond to you. Write to your servicer and call it a “qualified written request under Section 6 of RESPA.” It should be a separate letter and not mailed with your payment. The mortgage servicer must respond to you within 60 business days of receipt.

Your loan servicer is required to notify you in writing at least 15 days before the servicing of your loan is transferred to a new servicer. During the 60-day period beginning on the effective date of the transfer, the payment may not be treated as late if you mistakenly send it to the old mortgage servicer instead of the new one.

RESPA does not require or prevent a lender from maintaining an escrow account for the payment of taxes and insurance. However, if a lender does escrow for taxes and insurance, RESPA limits the amount that can be escrowed. It also requires that you are provided with an annual detailed disclosure about amounts paid on your behalf.

—>>> More info on maximum amount a lender may escrow.


Share this article

William Bronchick, ESQ.

Nationally-Known Attorney, Author, and Speaker

Attorney William ("Bill") Bronchick, the host of Legalwiz.com, has authored six best-selling books and is sought nationwide for his 30+ years of real estate and legal knowledge. He has been interviewed by numerous media outlets, such as CNBC, TIME Magazine, USA Today, Investor Business Daily, Forbes, and the LA Times, to name a few. William Bronchick is the co-founder and past President of the Colorado Association of Real Estate Investors and the President of the Colorado Landlords Association. Click on the "About" link above for more information on William Bronchick.

Related Articles

Finding Contractors

Finding a contractor that is honest and reliable is a tough, but crucial part of your real estate business. Here are some tips for finding that “Golden Nugget” of a contractor. Referrals This is the most obvious and easiest way to find contractors. Try to secure referrals from investors and friends; somebody you know and trust who

Read More