Fighting Foreclosures; Looking for Mortgage Errors

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Back in the 90's I spent years trying to correct mortgage accounting errors that I discovered when I set out to refinance my home. Back then, most of us didn't know the importance of verifying and tracking whether or not our mortgage payments were applied accurately -if applied at all!

When my mortgage servicing company misapplied my payments, as well as my additional principal payments, the errors went undetected for a number of years. Why? Because I didn't have access to a monthly statement -a tool needed to detect errors or fraud. The mismanaged mortgage accounting went undetected for years and once discovered too much damage had been done for the bank to correct the errors and determine (prove) the actual balance remaining on the mortgage. 

After a lengthy and exhausting battle to fix the ongoing errors, finally the bank relented and agreed to discharge the mortgage. Lenders have a  fiduciary duty to properly handle the accounting of our mortgages and our payments too. If errors (or fraud) are left to fester for any length of time, it becomes virtually impossible for anyone to find their way to the truth. 

In my case, and in many other cases, accounting errors or fraud went undetected because we didn't have access to a simple tool...a monthly mortgage statement. When errors or fraud is left to transpire over years, the end result can be devastating to the innocent and unsuspecting borrowers -who through no fault of their own find themselves in trouble. Lender errors and fraud prove quite costly -but much of it could be detected with the aid of monthly statements.

See: What if we could stop some foreclosures? 

See NBC's Kerry Sanders report from Miami;
Finding errors in your mortgage can save your home from foreclosure and in some cases -wipe out the mortgage.

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can lender stop sending mortgage statements if yes, when?

Yes, whenever they want!

in fact many borrowers never receive any statements -or accounting of their payments, escrows or additional principal payments allowing them to track or verify payments.

See comments here:

If you don't receive monthly statements, you can call and ask for a "payment history" schedule sent to you. I would suggest calling at least every six months.

What bank held your mortgage?

Washington Mutual was responsible for my mortgage. WaMu went out of business as of September 25, 2008. Since then JPMorgan Chase Bank took over servicing of the loan.

I requested and received a payment history. Is there an organization or professional who reviews the payment history for us simple folk?

If you have any question as to the handling of your loan and it's payment history schedule, you should always consult with an attorney experienced and knowledgeable in this area of consumer protection. You can go to to search for one in their database. Email me if you get stuck or have questions and I can try to find a referral for you. What area are you in?

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