Mortgage servicing companies usually initiate foreclosure proceedings on behalf of the lender or investor. Foreclosures occur when homeowners fail to make monthly mortgage payments and the servicer has full legal authority to act on behalf of the lender.
Mortgage servicing companies are usually paid monthly based on the monthly payments of a borrower. They may resort to calling you many times in a day to collect mortgage payments. Servicers do not get anything from helping borrowers. They get paid when borrowers pay. They also get a huge incentive from late payment charges. Charges earn these companies big amounts of money.
These servicing companies can help mortgage companies by helping them collect payments and administer accounts. However, these companies are paid huge incentives to collect payments and institute foreclosure proceedings. One can fall prey to foreclosure proceedings easily because of late payments.
There have been instances of fraud on the part of servicers and it is very important to know how to defend one’s property from foreclosure proceedings. One can easily become a victim of foreclosures because it may be possible that mortgage servicing companies can push a borrower to the limits and end up in a foreclosure.
The best defense against foreclosure proceedings is gaining enough knowledge about foreclosures. There are different strategies and methods of avoiding a foreclosure. To stop mortgage servicing companies from initiating a foreclosure against your property, you must be armed with enough knowledge about foreclosure proceedings. It is a not a good thing to fall prey to servicing fraud. Your home is not the only thing on the line. Even your credit score and eligibility to get a loan can be damaged.