My question involves a foreclosure in the State of: Washington
Greetings! and thanks in advance.
2nd mortgage note servicing company arbitrarily unilaterally changed terms on the mortgage note: changed grace due date from 15th of month to 10th of month.
Consequently all 2nd mortgage note payments received by this servicer after the 10th of any month are deemed 'deliquent' and the servicer assesses a 'late fee'.
Subsequent payments are first applied to the late fee, then to the mortgage payment for that month by the servicer, and if received after the 10th of the month, another late fee is assessed.
I have been consistently paying more that the amount due every month, most often with payments received by servicer between 3rd and 12th of any month.
On the one time my payment arrived before the 1st of the month, the servicer applied 100% of the payment to 'principal reduction' and then recorded a failure to pay mortgage payment after the 1st of the month.
I have requested in writing that they provide me with a copy of my mortgage note which shows they have a right to change the terms (they don't--I reread my copy of what I signed at closing and no where does it say they can). So far I have received nothing in return from them about my request.
I received a notice of default and intent to foreclose from this servicer. The notice of intent to foreclose says that I am past due by $470.46 with late fees due of $36.68. I sent them a payment in the amount of $900. I then received a statement from them showing the application of that payment, but none of it going toward payment of late fees, with another late fee assessed for not paying late fees, and consequently another 'ding' to my credit history.
However, there would be no late fees at all, no deliquency, no letter of intent to foreclose AT ALL if the servicer had not arbitrarily and unilaterally changed the terms of the mortgage note.
What can I do? I am rather irritated by this and would like to hold this servicer accountable in some fashion. To me this is fraud and extortion. However, I am getting nowhere with this argument--just being told by the CSR on the phone that all they see is that my note has a 10 day grace.
How do I fix this, and fix it so that it doesn't happen again? It happened once before, at the time the note was first serviced by this company (Chase Home Finance LLC, parent company JPMorgan Chase, N.A.) and at that time a phone call from me did the trick. This time, I can't seem to get anywhere with anything.
I filed a complaint with my state's AG office (and office of BFI) yesterday but the reply was that they could do nothing, however they did forward the complaint on to the OCC in Houston, Texas (so much for the bally-hooed 50-statewide AG inquiry into servicing fraud).
Thanks again in advance,
-PK in PNW