Make your lender turn over the original paper work for your loan!

FROM MY BLOG I RECIEVED THIS QUESTION:

Andy, I work with senior homeowners 62 or older that are facing foreclosure. I get the banks to reduce the principle balance and pay that off with a reverse mortgage. Most of my clients are on fixed incomes and can’t afford an attorney or mortgage audit. As a mortgage banker I can go through the loan documents to look for respa, tilia and other violations. How do I obtain the documents from a: the servicer B; the original lender and C; the closing title company? This gives me additional leverage against the banks.

MY ANSWER:
This is a great question.  Thank you.  I have been wanting to post on this subject.

A. The Current Servicer:

To compel the current loan servicer to send you the documents, you would want to have your client send a QWR (Qualified Written Request).

Here is information from HUD on a QWR:
http://www.hud.gov/offices/hsg/sfh/res/reslettr.cfm rel=.

Here is the RESPA code that shows a consumers right to make inquiry to lenders:
http://www.hud.gov/offices/hsg/sfh/res/resp2605.cfm

If you google “sample qualified written request” you will find sample examples including these ones:
http://uslenderaudit.com/sample_qualified_written_request_letter

These samples will give you a good general format of a how a qualified written request might be worded and include correct formating according to the US Code.  Rewrite these as necesary to suite your clients needs.

B. The original lender:
The QWR doesn’t apply to previous lenders, investors or servicers according to my reading of it. It only applies to the current servicer.  Your client or you with proper authorization, can legally request copies of the original records from the loan originator or mortgage broker.

C. The closing title company:
To request the original title company you will need your client to sign a letter authorizing you to request this information. Then you can request that the title company furnish you with copies of the records that they do have.  Hopefully your client can remember the title company that they used. Different states have different laws regarding record retention period so depending on when the loan was closed you might have trouble here.

There are numerous benefits to the QWR other than just getting the original paperwork and verifying your lenders math. I will be posting more extensively on the QWR at http://estopforeclosure.com/blog

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Andy Morris is an expert short sale Realtor in North Eastern Ohio and a loss mitigation expert. He offers a helpful 7 part video lesson with tools to assist you in getting out of foreclosure. You can request this here.