Alabama homeowners are facing a barage of mortgage abuses dues to mortgage securitization and mortgage service providers. Over the last several years, individual mortgages have been “bundled” together and sold to investors; this phenomenon is commonly referred to as securitization. Another creation of the mortgage industry is the mortgage service provider. This is a company that sends monthly statements and collects the monthly mortgage payments. The mortgage service provider does not own the mortgage; they merely collect the payments. These two “evolutions” is the mortgage industry (securitization and mortgage-service-providers”) have caused homeowners millions of dollars in erroneous fees and countless hours of grief. The New York Times has an excellent article shedding light on abusive mortgage companies.
What can Alabama homeowners do to protect themselves from these abusive lending practices?
1. Locate all mortgage closing documents.
2. Keep all statements and letters from the mortgage company, debt collectors and collection attorneys.
3. Keep records of all payments made to the mortgage company.
4. Obtain in writing any agreement made with the mortgage company.
If you have questions about your mortgage and potential mortgage abuses by your mortgage company or have been a victim of wrongful foreclosure, feel free to call or email me. My firm is currently representing a number of homeowners in Birmingham and throughout Alabama in mortgage abuse and wrongful foreclosure cases.