September 29, 2009

Late Payments During Short Sale

Your website has been very helpful, thank you!
I was unable to find this question in your site.

Whether the mortgage company can still report to the credit agencies the lack of payments during the short sale process?

I just received their short sale packet, but I am unable to pay. Can I dispute it if they put something on my credit report? I will be doing the QWR letter, but what about after they respond to it?

Thank you Paul!
God bless you!
Michelle (more…)

September 21, 2009

Unanswered Qualified Written Request


I enjoy your site very much, – infact, I check it every day for the latest informatin on how to solve my problem. 

When I was attempting to pull $$ out of my house when I was out of work, I was contacted by a housing lender.   When I told them that I was temp. out of work, they wanted to know if my wife worked.  (My wife is a homemaker, but had a small cleaning business on occasion).  We told them NO, however the persisted and called us back several times.  They took my wife’s business card to show employment–although we had no W2 to back it up.  We were honest with them, but now feel that we were being led to slaughter.   I had a VA note, but when New Century got involved, it reset everything and we re-did another 30-year note.  New Century–almost overnight sold (or assigned) it to Ocwen. After all these years, Ocwen has us on a ARM and told me that I make too much $$ to refinance under the Obama plan, but would qualify under their plan.  I submitted paperwork, W2, paystubs, etc and were told that we were approved. (They didn’t tell me what year). 

As I am attempting to get answers to any/all questions, I submitted an “Extremely Qualified Written Request” some months ago.   As time passed…..and passed…I finally receive a letter with several spreadsheets & explanations as to what the different charges mean.  I have been very persistent to ask “Who is my lender”.   They finally wrote back and told us that it is “confidential information”, and they would not provide it. 

Question:  Where do I go from here?   Is this a TILA violation?   I thought they would have to tell me if I demanded it.   I did–several times with CMRRR.   They will provide me nothing.   I suppose they are afraid that I will go around them if I knew who the lender is–and they are correct.   Straight as a Martin to his hole. 

I make the money again, in a great company and have paid the mortgage on-time ever since my lay-off.   I’m stuck and need your advise.  Is there any law you can provide?  

Thanks for all your help and professionalism.

Rick (more…)

September 15, 2009

Short Sale Negotiated Release


First off, many thanks to you for providing great insight and information on your blog!!

By following your “words of wisdom” I am in process of completing an approved short sale in which the lender has agreed to allow a full release of liability, a trade line entry of “Settled” (with no further language), and a zero balance.

My question is regarding the “Charge Off” listed (in their letter below). Does the “Charge Off” solely mean they will be writing off the loss in regards to tax filing? Or does it have other ramifications?

Do you have an idea of how this overall scenario (including the charge off) will affect credit and how long will it remain there?

Thanks again for being a “guiding light” for many of us!

Bob L.
Las Vegas

Copy of letter from lender follows:
Yes, we are agreeable to report “Settled” to the credit repositories without further language.  However, due to the large loss the Credit Union will be taking, due to our agreement with you not to pursue any deficiency balance, we will need to charge off the remaining balance on your Home Equity Line of Credit after the settlement.  When that transaction occurs, “Charge Off” will show on the Credit Report, although the amount due will show as “$0.00” as we will not be pursuing any recovery. (more…)

May 30, 2009

Qualified Written Request Limitations

Hi Paul:

On pages 287 & 287 of RESPA it states a written request doen’t constitute a QWR if delivered to a servicer more than 1 year after the date of transfer of servicing or date mortgage paid in full. Under RESPA-6 enforcement it states one has 3yrs to file a lawsuit to enforce violations of Section 6.   

So my question is this, If I have a mortage audit performed and in doing so I have requested documents from the lender and they failed to provide them and it is past one year of for date of chang of servicers, would I still send a Qualified Written Request demanding the documents?  How does that work. 

So many people didn’t even know they had the option of putting a lender on legal notice.  In addition, if the audit produced significant compliance violations, would I present them in a QWR and request a loan modification too?

Beth (more…)

April 24, 2009

Qualified Written Requests & HELOCs

Hello Paul: 

My mortgage is still with the original bank I borrowed from because they do not sell the loans and I have been trying to negotiate with them for 2 years now.

On the HUD website in regards to open ended mortgages, which is what I have, it says: “Both subordinate lien loans and open-end lines of credit (home equity loans) in first lien position are exempted from the loan servicing requirements”.

Does this preclude me from sending a qualified written request to my lender?

Tony (more…)

April 11, 2009

HELOC After Foreclosure

My situation is so complicated.My lender has failed to respond to my qualified written responses on my two home loans.I have recently received a 1099A for the first.I  received a notice from a new lender claiming that I must make payments to them on the second(HELOC).I no longer live on the property and have learned that there maybe a new tenant/owner.Am I required to pay the second if the first was foreclosed on?Do I have a viable claim of vioations of tila/respa since the lender GreenPoint Mortgage has failed to respond to the Qualified written requests on the two loans prior to the foreclosure? should I sue the lender?Any suggestions or advice

Kels (more…)

April 4, 2009

Extreme Qualified Written Request

Date: April 4, 2009

Certified Return Receipt Mail # 1111 2222 3333 4444 5555

Big Bad Mortgage Company
POB 12345
New York, NY 10001

Borrower(s) name:  Fred Flintstone
Loan Number:  1234567890
Property Address:  100 Bedrock Road Niceville, FL 32578


Dear Madam or Sir:

I am writing you to complain about the accounting and servicing of my mortgage and my need for understanding and clarification of various charges, credits, debits, transactions, actions, payments, analyses, and records related to the servicing of my loan from its inception to present date.  As such, please treat this letter as a “Qualified Written Request” under the Real Estate Settlement Procedures Act, codified as Section 2605 (e) of Title 12 of the United States Code.  As you may know, RESPA provides substantial penalties and fines for non-compliance or answers to my questions provided in this letter within sixty (60) days.

Due to the recent mortgage market meltdown and your involvement in this market, I am concerned that my loan has not been properly credited, amortized, calculated, and serviced properly.  I am also concerned with the ownership of my promissory note; to whom my actual obligation is owed; who is my actual lender; and your authority to collect payments and/or negotiate the purchase/repurchase of my promissory note from my actual lender.

The meltdown of the mortgage market and the effects of any financial manipulation may have affected the current amount you claim I owe as the principal balance due on my loan which may not be correct and may not have been properly amortized.  In addition, I am concerned that my escrow payments and/or my monthly payments may have been adversely affected and that I may be paying more than what I owe or less than is necessary to properly amortize my mortgage over its term.

Upon receipt of this letter, please refrain from reporting any negative credit information to any credit reporting agencies until you respond to the “requests” in this letter.

Due to the current economic climate, I am exploring various options to protect my property and finances.  My home is a very important and valuable asset to me that I desire to protect.  Please don’t infer any negative connotation by my letter, but the whole industry-wide practices employed in recent years trouble me and I am seeking information to not only alleviate my concerns, but to guard against future problems.

I am examining my finances and making determinations as to how best to payoff, reduce, and/or refinance my mortgage and/or sell my property to one interest or another.  I executed a promissory note that is a contract between myself and whoever owns that contract now.  The United States government may actually own my promissory note.  If so I or investors I know, may desire to purchase back my promissory note from the government or my actual current lender, at a profit, as part of a purchase of my property and/or restructuring of my finances.

I have contacted a firm to audit my mortgage loan that you service as well as explore various purchase, sale, refinancing, loan, business, and financial options for me.  In order to conduct this examination and audit, I need to have full and immediate disclosure including copies of all pertinent information related to my loan.  As such, please send to me, at the address above, copies of the following documents and answers to my servicing related questions below within the 60-day timeframe.


  • All “master” transaction registers/ledgers of my loan in your servicing files or backup files with you or any sub-servicer, including but not limited to the Fidelity mortgage servicing system, FiServ or any mortgage servicing system you use.  Please provide all information residing in any data field in the system or any component that supports the system that deals with any of the questions listed below.  (no screen or partial dumps or spreadsheets please)
  • Also, please provide and include all descriptions and legends of all codes used in your mortgage servicing and accounting system so that the examiners, auditors and experts I intend to retain to audit and review my mortgage account may properly conduct their work.
  • A certified copy of the front and back portion of my promissory note as it exists today along with all endorsements, affixed or un-affixed allonges, and assignments whether recorded or not.
  • A certified copy of the front and back portion of my mortgage as it exists today along with all assignments whether recorded or not.
  • Cancelled checks, wire transmittals or other evidence of payment for each assignment of my promissory note.
  • All executed, recordable and “non-recordable” assignments associated with my loan including, but not limited to assignments, transfers, allonges, or other documents evidencing a transfer, sale or assignment of my mortgage, deed of trust, promissory note or other document that secures payment by me to my obligation in this account from the inception of my loan to the present date.
  • All records, electronic or otherwise, of assignments of my mortgage, promissory note, or servicing rights to my mortgage.
  • All escrow analyses conducted on my account from the inception of my loan until the date of this letter.


After the recent problems in the mortgage market, I have many servicing related questions in addition to the questions enumerated above.  I worry that I do not have good and proper title to my property and that the amounts you claimed owed by me are incorrect.  Please answer the following questions for me.

1. What is your actual servicing relationship with my loan? Are you the servicer, master servicer, interim servicer, private label servicer, default servicer, sub-servicer, and/or special servicer of my loan?

2. Has my promissory note ever been securitized? If so kindly inform me of the following information:

  a. All trusts, SPVs, QSPEs, REMICS, and entities that my note has been assigned to from its inception to the current date?

  b. The current trust, SPV, QSPE, SPE, REMIC or entity my note is owned by?

3. Is there any Fannie Mae, Freddie Mac, Ginnie Mae, FHA, HUD, USDA, VA, or private guarantee related to my loan?

  a. If yes, who has provided this guarantee and what portion of my payment goes to this guarantee?

4. Who is the document custodian that safeguards and holds my “original” promissory note that I/We signed in ink?

5. Does my original promissory note currently have any “blank endorsements” on it? (Yes/No)

  a. If yes, can you kindly explain why?

  b. If yes, can you kindly tell me as of the date written above:

    i. Who owns my note and is the actual current “lender” and not servicer of my note?

    ii. Who claims to be the holder of my note?

6. Does my original promissory note properly reflect the chain of title from one interest to another? (Yes/No)

7. Are there any missing assignments? (Yes /No)

  a. If yes, can you kindly explain why?

8. Has any due diligence and/or quality control services conducted by you or any other entity on my loan identified any red flags, frauds, misrepresentations, misstatements, errors, or problems?

  a. If yes, can you kindly detail for me?

9. Has my loan ever been classified as a “scratch and dent” loan?

  a. If yes, can you kindly detail for me?

10. Will I receive my original (signed in ink) promissory note stamped “Cancelled & Paid In Full” when it is paid off or refinanced?

  a. If no, can you tell me why not?

11. Have any BPOs, property inspections, and/or appraisals by you or any investor been conducted on my property since the inception of my loan? (Yes/No)

  a. If yes, have I been charged or assessed any fee for any BPOs, property inspections or appraisals after the inception of my loan (Yes/No)

    i. If yes, kindly tell me the date of such BPO, property inspections or appraisal, the amount paid and provide me with copies of all documents related to each BPO, property inspection or appraisal conducted on my property including, but not limited to reports, orders, invoices and cancelled checks for payments.

12. Who may I contact to negotiate the purchase and/or repurchase of my promissory note?

13. What is the name and date of the pooling and servicing agreement that governs your servicing of my loan?

  a. Where can I secure a copy of this agreement?

14. Is there any power of attorney (“POA”) filed in my property’s county or any other county that governs your relationship with my loan?

  a. If yes, kindly identify for me the county where the POA is filed and the filing number, name, and date of the POA?


 For purposes of this section, please treat the term “suspense account” and “unapplied account” as one in the same.

1. Has there been any suspense or unapplied account transactions on my account from the inception of my loan until present date?

  a. If yes, why? If no, please state same and skip the questions in this section dealing with suspense and unapplied accounts.

  b. In a spreadsheet or in letter form in a columnar format, please detail for me each and every suspense or unapplied transaction, both debits and credits that has occurred on my account from the inception of my loan until present date?

  c. What is my current suspense account balance?

  d. Why was my money placed into suspense and how will it be allocated to my loan?


 For purposes of my questions below dealing with late fees, please consider the terms “late fees” and “late charges” to be one in the same.

  1. Have there been any late fee transactions on my account from the inception of my loan until the present date?

    a. If yes, why? If no, please skip the questions in this section dealing with late fees.

    b. In a spreadsheet or in letter form in a columnar format, please detail for me each and every late fee transaction, both debits and credits that has occurred on my account from the inception of my loan until present date?

    c. What is my current late fee balance?

2. Have you reported the collection of late fees on my account as interest in any statement to me or to the IRS? Yes or No?

3. Do you consider the payment of late fees as liquidated damages to you for not receiving my payment on time? Yes or No?

4. Are late fees considered interest? Yes or No?

5. Please detail for me in writing what expenses and damages you incurred for any payment I made that was late.

6. Were any of these expenses or damages charged or assessed to my account in any other way? Yes or No?

7. If yes, please describe what expenses or charges were charged or assessed to my account?

8. Please describe for me in writing what expenses you or others undertook due to any payment I made that was late?

9. Please identify for me in writing the provision, paragraph, section or sentence of any note, mortgage, deed of trust, or any agreement I signed that authorized the assessment or collection of late fees?

Thank you in advance for addressing the questions and issues above.  Upon receipt of the documents and answers, an exam and audit will be conducted that may lead to a further document requests and answers to questions under an additional QWR letter.

It is my hope that my immediate questions and audit will validate my debt to the penny.  If not, we will need to correct and adjust any errors or abuses identified.  I also want to negotiate a purchase price for my note from my actual lender.

I look forward to your timely response.


Fred Flintstone   

Certified Return Receipt Mail # 1111 2222 3333 4444 5555

February 22, 2009

National Balloon Voyage

I have a balloon loan with national city bank in fl. I was told by them that the pay off is due 26,000 dollars. I was told by them since i am not a fl resident they can not work with me to refinance or do some type of payment plan. I could afford to pay them monthly but not a pay off amount. Is there anything I can do?

Gio (more…)

February 12, 2009

Phil’s Qualified Written Request/s

Hi Paul,

I short sold my home in October, 1st and 2nd mortgages with Wells Fargo.  The first is settled, but the second has charged it off and is attempting to collect.  I have 2 questions. 

I already sent them a qualified written request via CMRRR, which they signed for on Jan. 17th.  It will be 20 days on Friday, and I haven’t received an acknowledgment from them yet.  What do you suggest the next course of action should be if they miss the 20 day deadline? 

Secondly, they sent me a 1099A, which I understand is only applicable to cases involving abandoned property or foreclosed property.  Is this appropriate or legal in a case that was a short sale, with both liens released by the bank so that title could be transferred to a new owner? 

The property was never abandoned or acquired in any way by the lender (foreclosed.)  Any suggestion on how to pursue this matter? 

Thanks so much for your insight, it is very valuable.

Phil (more…)

January 31, 2009

Breath Inside The House – The Qualified Written Request

This is kind of a broad question so I apologize.  Here is my problem: 

I have owned my own (small) publishing company for 25 years.  The paper I print is sustained solely by the advertising I sell.  Last year business dropped off dramatically.  I refinanced to keep all my payments current thinking it was a temporary situation (it has happened before) but things never bounced back. 

From September to December of 08 I didn’t sell a thing and had to call it quits.  Now I have, and haven’t since September had any income. 

My husband has a decent job but lives in another state (he is a pilot without enough seniority to be based in California) therefore he has an apartment in Phoenix.  My salary has always paid for everything here. he pays for the insurance (car, health, life) he has a little left over to throw my way once in awhile if i ask. 

I have gone back to school to get a degree in computer graphics and should be done by the end of summer or next fall.  I would like my mortgage company to somehow give me a pass for a year (loan reduction) then I will go back to fulfilling my obligation as agreed. 

They won’t budge or help at all, we are now 2 months past due.  Over the last year we have been cutting back in an effort to survive, we have no heat, many days you can see your breath inside the house, our trash can got repossessed (yeah can you believe they do that!) anyway my point is we are not living high on the hog by anyone’s standards. 

I have a first and a second totaling $400,000 all on traditional loans, no weird ARMs and my house is now valued at $180,000.  Can I do a value reduction?  I keep hearing about this.

Susan (more…)

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