Attention homeowners with mortgages, whether you’re current or in default: Double-check your mortgage bank’s math. There’s a significant chance that the bank is wrong about how much you owe them, particularly if you’re behind on your payments.
The revelation that mortgage servicers have been incorrectly applying payments and otherwise messing up their records isn’t new. Professor Kurt Eggert of Chapman University documented the problem as early as 2004, and in his recent testimony before Congress, he underscored that nothing had changed. What is new, however, is testimony in New Jersey that gives real insight into how the mistakes are happening.
Late last week, Adrian G. Lofton gave the New Jersey court that is investigating mortgage fraud in New Jersey a sworn statement that details how mortgage servicer records are altered by employees of Lender Processing Services. Although the LPS employees are given logins and passwords to access the banks’ own records for the purpose of correcting and reconciling the files, Lofton, a former LPS employee, explained how they instead destroyed the integrity of the banks’ business records.
Read How It Works — and Why It Fails here…