Is it fair to sue my mortgage company under RESPA after sending a Notice Of Error letter?

“Is it fair to sue my mortgage company under RESPA after sending a Notice Of Error letter?”

We talk in other articles about what exactly Notice of Error letters are, and how they help you when you’re dealing with mortgage companies.

We’ve had cases where the mortgage company did nothing to fix the errors we mentioned.

Consumers may wonder, “would it be right to sue them after we’ve sent them letters?”

All too often these mortgage companies will act indignant about being sued.

Let’s back up for just a moment.

When we send the Notice of Error letters, the mortgage company has 30 business days to do a thorough and proper investigation into the errors.

That’s 6 weeks. 

6 weeks to handle investigate these errors, fix them, and send you a response to let you know that they’ve been fixed. 

If they’ve fixed the errors in that time, then they’re off the hook.

Let’s take a moment to imagine this.

Let’s say the police called me and said, “Hey, we think you stole $100,000 from the bank.”

I ask them if I have to tell them right now if I did, and they tell me, “Nah, you have 6 weeks to investigate let us know whether or not you think that you did. And if it turns out that you took the money, you just have to put it back and everything will be fine.”

This is how it works for the mortgage companies. 

It’s a tremendous amount of power and opportunity that’s granted to them. 

In the past, when they didn’t do a proper investigation (which we find out when we depose them by asking exactly what they did), the judge would let them go without a second thought because they did the “bare minimum” of an investigation.

Now they have to do a proper investigation, and you can sue them if they don’t.

It’s completely fair and appropriate to sue them and get money damages. 

They had so much time to make calls/research on the internet/etc and investigate the errors you pointed out.  And they didn’t do it. 

Our philosophy is that when it comes time to sue them, hit them with what you can.  Ignore when they complain and bellyache about the lawsuit. 

They had time to fix things, and they neglected to do anything about it. 

If you have any questions, feel free to get in touch with us.

We’d be glad to help you deal with ungrateful mortgage companies in any way we can. 

You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly. 

We look forward to chatting with you. 

Thanks for reading, and have a great day!

-John G. Watts