Question: My father died owing some money on his mortgage. He was paying the original loaner and then SOMEWHERE in the process, the loan was sold to another creditor.
He continued to pay them and when he passed on, I called them to close out the account and they said his balance was the same amount that he had ORIGINALLY borrowed and even though he had paid a monthly payment for 8 yrs, his balance didn’t decrease.
The ORIGINAL loaner is now out of business, how can I find out the total of the amount he paid to them so I can figure out how much he could REALLY owe this second company?
Answer: Unfortunately I am unable to fully address your issue as it is a legal question, one that should be discussed with an estate attorney. I will say the current mortgage company or mortgage loan servicer should have a full accounting of whatever monies have been paid toward the loan and you can request an accounting.
I am not sure if this would apply to you because you are not the homeowner; but, there are RESPA laws that may help. Under the Real Estate Settlement Procedures Act (RESPA), a mortgage servicer must respond promptly to written inquiries from the homeowner. The mortgage company must address accounting issues or disputes within 60 days of receiving the written inquiry.
Send the letter U.S. Certified Mail, Return Receipt and include the account number and an explanation of the issue you are having and why you think the accounting is incorrect. Just like you explained in your question, thoroughly explain the issue in the letter to them.
The mortgage company or loan servicer must acknowledge your inquiry in writing within 20 business days of receiving it; and they have 60 business days to take action. Make sure you calendar everything to keep up with the timeline.
The mortgage loan servicer should then either correct the mistake or make a determination that the current accounting is accurate. They should send you a written notice of whatever action they took and why it was taken along with the name and phone number of someone to contact for more information or help.
Consumer Financial Protection Bureau
The Consumer Financial Protection Bureau is helpful in resolving mortgage complaints. There is a hotline to help resolve disputes that borrowers have with lenders and for many consumers it has been a success in getting mortgage companies to respond. To file a complaint with the hotline, visit it online https://help.consumerfinance.gov/app/mortgage/ask or call (855) 411-2372. The best of luck to you.