How to Dispute an Error on Your Mortgage

In a recent blog, we covered various reasons why your mortgage could change after closing. Whether the change came from increased taxes, new servicer fees, or a number of other factors, small fluctuations could cause a big difference in your mortgage. It's essential to monitor your mortgage for changes in case your servicer makes an error. In the event of an error on your mortgage, you have a few options to consider.

Disputing an Error

Under the law, errors such as incorrectly applying or crediting payments, imposing unreasonable fees, and improperly starting a foreclosure sale may all be disputed. If you believe your servicer has made an error and you'd like to dispute it, you can start by calling your servicer using the information provided on your monthly mortgage statement. However, the Consumer Financial Protection Bureau recommends having all requests and responses done in writing. You may need to submit a letter to your mortgage servicer to explain the errors you have found. When sending a letter, you should include the following information:

• Full legal name
• Home address
• Mortgage account number
• The error or incorrect information on your most recent payment

TIP: Your servicer may have a different mailing address for letters reporting errors or requesting information. Find more contact information for your servicer online or on your mortgage statement. Your servicer must send a letter acknowledging your note within five business days of receiving it. However, the time it takes for your servicer to respond to the actual error will vary based on the situation. Typically, they'll will respond with an answer or request additional information within 30 business days. In some cases, the servicer may request an additional 15 days to investigate the error. In the meantime, continue paying your mortgage as if everything is normal.

Requesting Information

If you're unsure of whether your servicer actually made an error, you may also request additional information about your mortgage. Similarly to disputing an error, sending a letter to your servicer will guarantee that you get a timely, written response. Your servicer must acknowledge your request within five business days of receiving it. Your servicer may respond within the traditional 30-day period; however, they may request an additional 15-day extension. In some cases, the servicer is not required to respond to an error or information request. For example, if you send multiple letters about a similar situation, your servicer may only address the first letter. Other instances include, but aren't limited to:

• Requesting information you've already received or information that is currently being sent
• Submitting a request that is too broad or doesn't include the key information listed above
• Requesting information about a loan that has been transferred or paid off more than a year ago

For more information and writing templates, visit ConsumerFinance.gov.

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