Can mortgage servicing companies foreclose on property?

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. Read more