Falling behind on your mortgage payments can leave your loan falling into the hands of a non-bank servicer. While going through a foreclosure is already a troubling matter as it is, it turns out that these non-bank servicers are posing more problems for those who have pending foreclosure cases.
As previously reported here on Realty Today, applying for a mortgage is a long-term commitment. Whether you choose a 15- or 30-year term loan, making monthly mortgage payments on time is a responsibility of the homeowner. However, not everyone can pay their mortgages on time, which results to a foreclosure.
This means that a non-bank servicer will be taking hold of your loan and should provide the homeowners with solutions to keep their home. However, Realtor.com notes that some of these non-bank servicers are not really interested in helping homeowners with finding solutions to keep their home; instead, they are focused on keeping the homeowners away from the house.
"The investors buying these loans are not interested in offering home-saving solutions to struggling homeowners," said the director of foreclosure prevention at Legal Services NYC, Jacob Inwald.
What makes it even harder for homeowners who have their loans transferred to non-bank servicers is that these investors are not bound by the National Mortgage Settlement (NMS), which offers protection for consumers. In 2015, there has been an increase of 18 percent in the number of US residential mortgages accounted for by non-bank servicers, as compared to its figures in 2012.
The increase is said to pose more problems for homeowners with pending foreclosure cases, as reported by the Government Accountability Office Report.
The shift could lead to "hard to consumers, such as problems or errors with account transfers, payment processing, and loss mitigation processing." Nearly 90,000 residents of New York have pending foreclosure cases and non-bank servicers can lead to more homeowners losing their properties.
