My mortgage currently seven years old, has been sold a number of times. This in and of itself can be very frusterating. As the borrower, we have no rights to refuse who is servicing the mortgage. We are forced to update and juggle the information as our loan is constantly sold and resold to new mortgage companies.
The most recent iteration of this was when Loancare purchased our loan. We found out they purchased our mortage when we received a letter in the mail dated 04/28. The letter showed they purchased our loan effective 04/14, and that from now on we need to remitt payment to them directly.
The problems start with the notice coming to me on 04/28, long after we already mailed in our mortgage payment to the previous lender. Normally this would not be a problem, because the letter even states any payments made to the previous lender would be forwarded to Loancare. The problem however, is that although our previous lender received the payment well within the due date, Loancare did not receive the forwarded payment until after the due date.
I received a Mortgage Statement indicating I have past due balances and late fees of $18.85. The real problem outside of unjustly applied late fees, are if Loancare will report me as a late payer to the credit bureaus. I have never in the last 10 years missed a single payment for anything. I feel ripped off by Loancare first off in assessing me a fee for a payment that was sent in ON TIME. If Loancare does report to the bureaus a late payment, I will be very upset.
The failure on Loancare is providing adequate notice to the borrower of the loan buy out. The loan buyout was completed on 04/14, yet we received no notice until 04/28. Does it really take 14 days to form fill a generic letter indicating the buy out? They need to understand that my May payment was already mailed to the previous lender long before I received notification of the buyout on 04/28.
How can they access late fees and hurt my credit because of their lazy business practices.
Be forwarned that business with Loancare will be conducted on their schedule with no regard to you. Their call centers are not open on weekends, they provide hours of operation primarily during normal business hours. They make no real effort to provide an avenue for good consumers to resolve disputes. And they charge late fees and potentially report bad credit for their own mistakes.
Consumers should be protected against this type of mistreatment regarding mortage loan buyouts when they have no control of the buyout, no notification of the buyout.
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