How do I use Notice Of Error letters in my foreclosure case?
“How do I use Notice Of Error letters in my foreclosure case?”
When you’re facing a foreclosure, you may be wondering, “How can I stop this from happening?” One part of the answer is to properly use Notice of Error letters under the federal law of RESPA.
First, you can find detailed information on foreclosures and the federal law RESPA for free by going to ForeclosureDVD.com and RESPAVideo.com as these sites have several incredibly detailed videos and downloads on foreclosures and the RESPA law, including examples.
First, what is a Notice Of Error letter?
This is a letter you send your mortgage company.
In this letter, you tell them what’s wrong, the evidence to back up your claim, and that they should fix it.
Usually you’ll see a special address where you can send this letter to on the front or back of your most current mortgage statement.
You can also find the address on their website.
If you don’t find the address, call your mortgage company and ask them what the address is to send a notice of error letter.
Let’s say that the mortgage company wanted you to pay $5,000 to stop a foreclosure.
They’ll say, “If you pay us $5,000 by February 1st, we won’t foreclose on you.”
So, you pay them the money they ask for, but they still foreclosure on you later the same month,
That wasn’t part of the deal.
This is where you send a Notice Of Error letter and tell them, “Hey, this isn’t what we agreed to do, and you shouldn’t be foreclosing on me. Fix this.” Obviously explain this in detail.
The mortgage company has 5 business days to acknowledge your letter, and then they have 30 business days (from receipt) to do an investigation.
Unfortunately, this would take you beyond the foreclosure date.
You may be wondering, “Well, what good does it do to send this letter, then?”
Well, here’s some of the good it does.
You send them this letter, and you may want to send it to the foreclosure lawyer also.
The foreclosure lawyer doesn’t have to investigate it the same way as the mortgage company, however they may look at that letter and say, “Well, they have all the evidence right here.”
Then they may stop the foreclosure themselves.
But let’s say that no one stops the foreclosure.
And the mortgage company forecloses on you and lies to you.
We may use the FDCPA, or Fair Debt Collection Practices Act, and Alabama law against the mortgage company.
You also have this Notice Of Error letter as proof that they’re wrong to foreclose on you.
You send them another letter saying, “You’ve foreclosed on me, which is wrong because that doesn’t follow our agreement.” Again you explain this in detail.
What does it mean to “fix” this problem?
It means making it as if the foreclosure never happened.
They need to void the foreclosure, and waive all the fees that they made you pay. Fix any credit report, etc.
What if the mortgage company says they spent money on foreclosure lawyers?
We don’t really care, because they shouldn’t have foreclosed on us anyway.
What if they claim to have lost my payment?
When we say “lost it,” we mean that they deposit the money from your account, then claim that they can’t find it.
This is when you say, “Okay, but you’re the one who took the money in the first place.”
Eventually they’ll admit that they deposited the money, but they will maintain that they can’t find it, and they’ll foreclose on you anyway.
This is why we send a Notice Of Error letter, because they are making an error.
Maybe they’ll say, while you’re filing for loss mitigation, “Fill out this form, and we won’t foreclose on you.”
Usually they will do dual tracking to make sure you fill out the form in plenty of time.
So, you do everything right.
You send in your form.
However, the mortgage company denies your form because you forgot to put your pay stubs in there.
But, you actually sent everything in time, and have a mailing receipt to prove it.
Then they say, “Well, yeah, FedEx got it to us, but once it got to our building it got lost. That’s your fault, not ours.”
Maybe they got your form, but they decide to reject you anyway.
Send them a Notice Of Error letter saying, “You’ve rejected my form for loss mitigation and plan to wrongfully foreclose on me. Please fix this.”
When you send a Notice Of Error letter, you should almost always send a Request For Information letter also.
We have another article that talks in depth about Request For Information, however this letter asks why they’re doing this or that.
You may want to send a secondary Request For Information letter asking what they did with your pay stubs that you sent them.
Ask them to explain it to you.
These letters go hand in hand.
When you see that a mortgage company is about to do something wrong, you should send them a Notice Of Error letter.
You can write them a letter, in addition to calling, emailing, and faxing them. But do send them the letter.
If the violate the law, then the mortgage company is in big trouble.
When they get sued for this kind of thing, the judge looks at the mortgage company with confusion.
The judge may ask the company, “Didn’t they warn you not to do this?”
Their excuse is that they’re such a large company that they can’t be held accountable to see every piece of mail.
Federal law requires them to keep up with their mail.
It’s ironic how they will accuse you of being late for your deadlines by one day, but as soon as they blow through their deadlines, they act flippant and complain about how unfair it is to hold a big company accountable for laws and deadlines.
If you’re dealing with a foreclosure, definitely use these letters to help you stop your foreclosure.
If you want to hire us to handle your case, we will gladly help you.
Use these Notice Of Error letters to protect yourself from wrongful foreclosure.
Because these abusive types of mortgage companies are pushing for foreclosure, even when their own paper work says it’s wrong, they will foreclose on you because they don’t care.
When they break the law, you can sue them in Federal Court to punish them for their wrongdoings.
This may lead these companies to follow the rules in the future.
Feel free to get in touch with us.
If you live in the state of Alabama and you have any questions about what we’ve talked about in this article, feel free to contact us.
You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will gladly get in touch with you.
I look forward to hearing from you.
Have a great day!