Once you secure your mortgage, your relationship with your lender is far from over. In fact, it’s just starting. This is why it’s important to choose a lender that you trust and that you work well with because you could be dealing with them for another 30 years.
What happens if your mortgage lender gives you the runaround? It usually means a lot of stress and worry about the status of your home. Luckily, there are ways to avoid this type of runaround.
The Law Spells it Out
First, you should know that the law is on your side. If you make a request of your loan servicer, they must respond to you within 30 days – it’s the law.
We don’t recommend that you make your request over the phone, though. The law only protects those requests made in writing. Make it official and write your question or complain down and mail it into your loan servicer. Within five days they must admit receipt of your letter. Within 30 days, they must respond to your question or concern.
If your lender doesn’t respond within that time, you can file a complaint with the Consumer Financial Protection Bureau. They will then work on your behalf to get an answer or resolution for your issue.
Send Your Payment to the Right Address
A lot of the rules that lenders must follow has to do with how they handle your money. One of the largest rules is how long they hold onto your money. If you do everything right, they must post your payment to your account right away. If you don’t follow their rules, though, they can hold onto your payment for up to five days.
In order to avoid a delay in your payment posting, do the following:
- Use your payment coupon
- Send the payment to the right address
- Write your loan number on your check
- Send in a full payment unless directed to do otherwise
Get Homeowner’s Insurance
You must carry homeowner’s insurance when you have a mortgage. If you don’t, the lender can force a policy on you. But, they must warn you at least twice in writing before they do so. In order to avoid any confusion and overpayment on your part for insurance, make sure you carry enough homeowner’s insurance the entire time that you have a mortgage.
If you have insurance, but your mortgage company claims that you don’t, mail in official proof of your policy. Make sure you get an official Declarations Page from your insurance provider and that you send it via certified mail so that you have proof that the lender received it.
Go Higher on the Totem Pole
If you don’t get the answers you need from the customer service rep you talk to, ask for someone higher than him/her. You don’t have to stop at the first manager either. If you don’t get the answers you need from the first manager, keep asking for the higher-ups until you get the answer that you need.
Getting the runaround from your mortgage company can be frustrating, but you can get around it. You are better off trying to avoid the situation at all, but if it does happen, use the above tips to help you resolve the issue.Click to See the Latest Mortgage Rates»