HOM INtro #15: Your Servicer is a "Go-Between"

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Most often folks think they are talking to their lender—or at least A lender—when trying to arrange a workout on a defaulted loan. In truth, you are almost always talking to a ‘servicer’. A servicer most often does NOT OWN your loan but, in fact, is handling the details related to it as a servicing company.

A go-between.

You need to know how go-betweens work and what responsibilities they have.

Most importantly, what RIGHTS they do not have.

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HOM INtro #15: Your Servicer is a "Go-Between"

  1. 1. “ Your Real Estate Advisor” INtro #15 Your Servicer Is a “ Go-Between” Brought to you by: Home Ownership Matters Training Institute
  2. 2. Objective The goal of this intro is to provide clarity on the role of the Servicer and to uncover specifically what they can do (and frequently do illegally) relative to your mortgage. What you learn could save your home or the home of a family member or friend. Grab a notepad and pay close attention Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  3. 3. Servicers ACT as “Go-Betweens” Go-Between — Refers to individuals or entities who exist to handle the communication (go-between) two parties Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>Go-Betweens: </li></ul><ul><li>Are selected/contracted by a party to handle their communication </li></ul><ul><li>Are engaged without the consent of the 2 nd party (Operations Manager—Clients of Home Ownership Matters) </li></ul><ul><li>Are responsible to handle tasks necessary to complete the instructions of the party who hired them </li></ul>
  4. 4. LOAN SERVICERS Go-Between YOU & YOUR LENDER (Holder of your mortgage or deed-of-trust) **The Servicer is ALMOST NEVER Your Lender ***Your Servicer may utilize a sub-servicer Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  5. 5. Your LENDER Contracted with the Servicer to: <ul><li>Stay in touch with you/keep your records up-to-date </li></ul><ul><li>Collect payments as scheduled—Customer Service Dept. </li></ul><ul><li>Handle your Escrow account—Escrow Dept. </li></ul><ul><li>Manage a Default, if one occurs—Loss Mitigation Dept. </li></ul><ul><li>Pursue Foreclosure, if necessary—Loss Mitigation Dept. </li></ul><ul><li>Handle other details, per their agreement </li></ul>Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  6. 6. Servicers SHOULD NOT Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>Initiate or pursue legal foreclosure against you </li></ul><ul><li>UNLESS </li></ul><ul><li>They have become the “real party of interest” </li></ul><ul><li>Which requires that: </li></ul><ul><li>They must actually purchase your mortgage/deed-of-trust </li></ul><ul><li>They must have been authorized to do so through an assignment of the mortgage/deed-of-trust </li></ul>
  7. 7. Key Strategies for Improved Communications Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>Review your Servicing transfer to determine if your servicer is: </li></ul><ul><ul><li>The “Real Party of Interest” </li></ul></ul><ul><ul><li>Just a Go-Between </li></ul></ul><ul><li>Be sure you’re dealing with the correct D I V I S I O N of the Servicer’s Shop </li></ul><ul><li>Speaking with a supervisor is preferable </li></ul>
  8. 8. Let’s Get Some Facts Straight Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>Servicers DO NOT generate loans </li></ul><ul><li>Servicers MAY or MAY NOT be banks </li></ul><ul><li>Servicers SELDOM own the loans they service </li></ul><ul><li>Servicers are a NECESSARY evil </li></ul><ul><li>Servicers are NOT USUALLY straight shooters </li></ul>
  9. 9. Resources Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. <ul><li>HOM’s Blog: HomeOwnershipMatters.blogspot.com </li></ul><ul><li>Full Webinar “Inside the Loan Servicing Department” </li></ul><ul><li>(Coming Soon) </li></ul><ul><li>Your Real Estate Advisor </li></ul><ul><li>National Consumer Law Center’s “ Foreclosure Prevention Counseling” available at www.consumerlaw.org or call (617) 542-9595 </li></ul>
  10. 10. Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved. Vol 01: Getting to the Closing Table   Vol 02: Is it Fraud or “just predatory”?   Vol 03: Brokers: Are Your Agents Putting You at Risk?   Vol 04: PALM—Practical Application of Loss Mitigation   Vol 05: Secrets of a Professional BPO   Vol 06: Fair Housing Vol 07: Seller is the Lender   Vol 08: Short Sale: Not Your Typical Transaction   Vol 09: Foreclosure Intervention: Why Do You Need a Specialist? Vol 10: Buying REO is Risky Business   The BT Series   Vol 11: Buying TIME—When Your Money is Running Out Vol 12: Mr. Smitherman—The Connection for Your Housing Situation Vol 13: Q W R—In Detail Vol 14: Foreclosure: a PROCESS & an EVENT Vol 15: Taking Charge of Your Housing Situation Partial List of Webinars Offered by HOM
  11. 11. HOM Disclaimer/ Hold Harmless The material provided is deemed to be reliable and accurate at the time of publication. However, the subject matter is undergoing almost constant change and you should assume responsibility for current research on procedures, policies, guidelines and changes in the law concerning your housing situation. Trainer has relied upon such sources as the National Consumer Law Center but is NOT an attorney. This information is provided as a community service. Please seek legal counsel to address your specific mortgage or housing situation and to determine your rights and responsibilities. Home Ownership Matters, LLC and contributing author hereby disclaim any responsibility or liability which may be asserted or claimed arising from reliance upon the information provided. Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.
  12. 12. Survey You can take the survey online at: http://www.surveymonkey.com/s.aspx?sm=2M63rhnWI80dBfs72fg_2f_2fQ_3d_3d Or fax this to (Toll Free): (877) 587-4507 Name: _________________________________ Phone: _____________________ Firm Name (If Applicable): ______________________________________________ Address: _____________________________________________________________ City: ____________________ State: ____________ Zip: ______________________ E-Mail Address: _______________________________________________________ I would like to be added to the HOM Distribution List: ___ Yes ___ No I understand that my information will not be sold or shared with anyone other than HOM ---------------------------------------------------------------------------------------------------------- Please let us know if you have any questions or comments: ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ What would you like to see HOM do in the future? (Webinars, courses, e-mails, articles, etc): ____________________________________________________________________________________ ____________________________________________________________________________________ ____________________________________________________________________________________ Thanks for your input, we really appreciate it! Copyright © 2008. Home Ownership Matters, LLC. All Rights Reserved.

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