Skip to content
×
PRO
Pro Members Get Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
$0
TODAY
$69.00/month when billed monthly.
$32.50/month when billed annually.
7 day free trial. Cancel anytime
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Private Lending & Conventional Mortgage Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 19 hours ago, 12/22/2024

User Stats

2,714
Posts
4,876
Votes
Steve K.#3 Contractors Contributor
  • Realtor
  • Boulder, CO
4,876
Votes |
2,714
Posts

Anyone Else Fed Up With Loan Servicing Companies?

Steve K.#3 Contractors Contributor
  • Realtor
  • Boulder, CO
Posted

There must be a lot of trading going on in the secondary mortgage markets, because so many of our loans have changed hands recently and it has been super annoying.

For example one of them has switched several times just in the past few months, from the originator to SLS to PennyMac to Lakeview (subserviced by Flagstar but then a month later switched subservicer to Mr. Cooper), and now to Newrez (if I got that right, I may have lost track honestly). One of them dinged our credit and sent a late notice before I even had time to set up ACH payments with them. I had just gotten done setting up the new ACH info with the last servicer, and had not gotten anything from the new one yet. I think they may have tried to call because I got a call with caller ID "Newrez" but when I answered, nobody there. Another time the ACH info should have transferred automatically. I got a notice saying "Don't worry, your payments will automatically be transferred to us", however my bank didn't recognize the new servicer's info and the payment didn't go through, making us late and again dinging our credit and triggering late fees. My credit is still just over 800 but I was proud of that 840 score. It's just annoying trying to keep track of payments when they keep switching companies and having to pay these fees. Not to mention scams are so prevalent these days, it's stressful vetting all these companies and making sure my financial info isn't getting into the wrong hands. I'm just annoyed. 

I wish I could go back and have all my loans with my local credit union who keeps them in-house to avoid all this. It's not so bad when you only have one property but with a portfolio of properties, it can take up a lot of time if they keep switching all. They are also not easy to deal with. It's frustrating to finally have it all sorted out then get a notice that the mortgage has been sold again and there is a new servicing company taking over and the mess starts all over. I've been talking to a lot of folks in the Philippines. On the plus side they are super friendly there and I'm learning some Tagalog, but I'd rather be doing something more remunerative with my time obviously. Plus it makes bookkeeping and doing taxes etc. more complicated and annoying/ expensive. It almost feels like they make it difficult on purpose so they get extra revenue on late fees. Maybe they are trying to annoy people with low rate mortgages on purpose to get them to refinance (conspiracy theory alert)? If somebody out there has a bunch of sub to deals, this could create big problems for them I imagine. 

If it didn't mean trading 3-5% rates for today's rates, I'd refinance and have all these loans with my local credit union who doesn't sell them. Basically just venting with this post, but if anyone has any advice that would help, I'm all ears. 

Anyone else dealing with this lately as well, or just me?

Loading replies...