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  1. #1
    Join Date
    Oct 2010
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    2

    Default Second Note Servicer Changing Note Terms Results in Notice of Default

    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

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Second Note Servicer Changing Note Terms Results in Notice of Default

    What does your copy of the mortgage and note say about grace periods and late fees? Are you stating that you have a contractual 15 day grace period, or that you don't have a contractual grace period at all but that there isn't a provision saying that the date can be changed?

    This servicer took over the mortgage when? You were notified of the deadline for payments and revised grace period when? And you started making payments within the revised grace period after you received that notice, or have you ignored the notice?

  3. #3
    Join Date
    Oct 2010
    Posts
    2

    Default Re: Second Note Servicer Changing Note Terms Results in Notice of Default

    Quote Quoting Mr. Knowitall
    View Post
    What does your copy of the mortgage and note say about grace periods and late fees? Are you stating that you have a contractual 15 day grace period, or that you don't have a contractual grace period at all but that there isn't a provision saying that the date can be changed?

    This servicer took over the mortgage when? You were notified of the deadline for payments and revised grace period when? And you started making payments within the revised grace period after you received that notice, or have you ignored the notice?
    Hello Mr. Knowitall :-)
    I have a copy of what I signed, a copy of my contract that I signed originally. It clearly indicates no late fee unless payment is received after the 15th of any month.

    What I *don't* have is:
    anything from Chase that shows when/where/how they managed to change this grace from the 15th to the 10th, without my knowledge or consent.

    As far as I know, Chase Home Finance LLC purchased the servicing rights to the original mortgage note about 5 to 10 days after I signed the original mortgage papers.

    Occasionally I don't receive enough of my monthly revenue until about the 2nd or 3rd of a month. On those occasions, I don't generate an ACH payment to Chase until the 5th or 6th of that month. It is at those times when Chase apparently won't post the ACH until the 12th or 13th (I have no idea why they do this) and then they will assess a late fee, even though the payment has been received before the 15th.

    Hope this helps clarify? :-)

    Anyway, and also, when I realize what's going on, and send another, 2nd payment, to, in theory, go on their books as next month's payment, and it is received by Chase before the 1st of the next month, instead of posting it as a payment, it occasionally is posted as a 'reduction in principal'. I won't know they have done this, until I receive the paper statement from Chase in the mail, after the 10th of the month. At that time, I scramble to make yet another payment, an ACH that is received by them no later than the 15th. Yes, this means that sometimes I am making several payments to Chase in the same month, yet Chase is even then assessing late fees. What a mess indeed.

    -PK of PNW

  4. #4
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Second Note Servicer Changing Note Terms Results in Notice of Default

    Being hired to service a loan is a very different thing from acquiring the loan itself. Servicers work for the actual owners of the mortgage. Chase does service its own mortgages, but it also services mortgages for many other lenders.

    What happened when you faxed or mailed the document that you signed to Chase and asked them to explain why they weren't complying with the contract?

    Chase has online banking that you should be able to use to pay your mortgage, and by using that you should be able to assure that a check you mail in won't inadvertently be treated as a payment toward principal when you intended it to be a mortgage payment.

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