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All Forum Posts by: Noah P Bonds

Noah P Bonds has started 14 posts and replied 59 times.

Post: Could someone please help…

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

If you think this property will continue to appreciate and the rents will continue to grow, then I'd suggest the cash out refi. It's hard to not make money on your rehab efforts, but remember you get to keep a property that hopefully cash flows, has loan pay down, tax benefits and appreciation.

Post: What happened to David and Rob on the BP Podcast?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

I still think they should ask us what we want. We might watch more of their videos then. Makes me feel even more like a product when they ignore their members. That vid covered all the problems I think they have. For me it really fell apart when rates jumped. Deals stopped penciling. You could hear it in D. Greene's tone. He talked less about deals and started telling people to just figure out how to make more money, which is reasonable, but not something that sells. All good things must end I guess. 

Post: What happened to David and Rob on the BP Podcast?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

I didn't like that members were not a part of that transition. They should ask what their subscribers want.

Post: What's The Point

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

I think throwing down the rope is part of mastery. You think you know something, but you don't really know it until you teach it. Doing that helps you see from a 30K' viewpoint. Think of forums like a chance to do that. You get to answer questions, help people and along the way you gain a bigger perspective. You'll know when its time to move on.

Post: Has anyone successfully sued their loan servicer?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36
Quote from @Ron S.:
Quote from @Noah P Bonds:

One of my loans was taken over servicing by Shellpoint. Since then it's been a pita for the last 6-8 months. Essentially my taxes suddenly weren't being paid and they subsequently lowered my escrow payment. I initially found out because my county began sending me delinquent notices. After many attempts to explain this to Shellpoint they finally have readjusted the escrow payment to an even larger than initial amount.  I have been trying to explain this to them since January - it's taken them until June. I had sent them the delinquent notices from the county at least two times. My initial piti payment was 8,870 now it will be 10,359.To make matters more messy I changed insurance during this time - they repeatedly sent me notices that they did not have proof of insurance...I had my insurance rep send them the docs several times before they finally acknowledged the new insurance. I don't know if this is worth pursuing but I feel like they've really dropped the ball over and over. I'm guessing It's not worth it, but I would like to hear if anyone has ever sued a loan servicer and what they outcome was.


I'm a bank and I get sued all the time. I also manage the insurance and escrow department for my bank and while we make mistakes, we fix them and we make sure we pay for any penalties if its our fault. I've had to pay for some insurance premiums and some late penalties on property taxes but i can say, I've never been successfully sued in 15 years, because our process is well documented and its not a pattern or pervasive or malicious in intent (Some elements needed to sue in my opinion) if we make a mistake and, I've always made the borrower whole. Shellpoint is a LOT bigger than my bank so, I'm guessing they probably have a decent process in place as well? 

I'm guessing you have some of the pieces but not all of it? Servicers don't typically just stop impounding for taxes and insurance, if they have impounded in the past. The only why my company stops is by written instruction to cancel. In fact, some states require the borrower to cancel impounds in writing before the lenders/servicer is allowed to cancel so, if they cancelled and you didn't instruct them to, ok maybe they are negligent. However, they cured their negligence by reinstating the impounds for taxes. 

For the most part, they should pay for any penalties from the tax authority but at the end of the day, if you weren't paying for the taxes through escrow, and they weren't disbursing to the tax authority, but now you are and now they have, it makes sense the payment went up because they are covering the shortage for the period you weren't paying. If you were paying into the impound account this whole time, that's another story.

The same goes for insurance. You say your agent sent them proof of insurance but yeah, for 15 years I've heard that story and the agent is usually the one dropping the ball. At the end of the day, you changed insurance. If you can document your previous policy (Exhibit A) was from (As an exampled) 03/01/2023-03/01/2024 and your replacement policy (Exhibit B) was from 03/01/2024-03/01/2025, that's it, that's all you need. Those two declaration pages with coverage periods are all you need to document no lapse in coverage. That said, you must also meet the coverage requirements, loss payee/mortgagee clauses, deductible requirements, etc..  If you had no gap in coverage, the lender cannot make you pay for any gap coverage or force placed coverage. They can charge you a million bucks for a force placed policy but you'll get a 100% refund in my scenario. Shellpoint is smart enough not to double cover and try to charge for it.

If you're just pissed you had to send it several times but it got taken care of ultimate, yeah it sucks but, you aren't going to prevail in any lawsuit. What harm or loss did you suffer? File a complaint with your state agency or their regulatory agency or the FDIC and move on.


Thanks for the reply. I've moved on at this point. The insurance issue was resolved, but only after the agent called them a few times. The impound issue began when they took over servicing. There was one loan that covered three tax parcels and they were only paying for one parcel. I think I've got that resolved at this point. I'm mostly just mad that it took so much of my time to get it sorted. Prob 20 hrs of the most aggravating phone calls explaining it to them over and over.

Post: Has anyone successfully sued their loan servicer?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

I had not thought of the deductions - good point. I've got enough depreciation to keep me safe for now, but that sounds like a good option to have. Mostly I was thinking about the extra discipline I would need to set aside the money for TI.

Post: Has anyone successfully sued their loan servicer?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

This was actually one of the options they gave me. I was told that after 24 months they can allow it. I opted to keep paying TI out of escrow for now. It feels a little safer for me to do it that way. Maybe once the dust settles I'll take the plunge. What do you like about paying it yourself? Do you ever worry about getting behind on those?

Post: Has anyone successfully sued their loan servicer?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

Following up - I tried Shellpoint one last time today and we came up with a plan. I sent them a payment to my escrow account for the surplus they had accidentally sent me earlier in the year. This was money that should have gone to my property taxes. It's not enough to reduce my escrow payment back to normal, but it will help. Next we put in a request to stretch out the timeframe for catching up the escrow. They had it set to 12 months and I'm hoping it will be stretched to 24 months. I was told they only do increments of 12 months so I simply said extend it to the maximum allowable time. I have zero faith in this loan servicer however so I will continue to keep a close eye on the situation. If there is anymore to report I'll make another reply to this thread. Thanks again for your comments.

Post: Has anyone successfully sued their loan servicer?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

Thanks guys. I think I'll just continue to pester them. I just want the payment to go back to where it was. I'll be out an additional 17K/yr until the escrow catches up. The other issue aside from the giant hassle is now that the payment is higher I'm less likely to cash flow and will be at slightly  higher risk of default. Rent's have dropped in this area and may continue to drop a bit more( lots of new inventory coming online this year). I feel like I have less of a buffer now and any little bit of capex could put me in the red. I do have reserves, but I have worked too hard improving this place to see the cashflow get ruined by this loan servicer.

Post: Has anyone successfully sued their loan servicer?

Noah P Bonds
Pro Member
Posted
  • Boise, ID
  • Posts 59
  • Votes 36

This is for Boise, ID. I doubt it's worth pursuing, but I'm mostly wondering if anyone has ever won. What is a QWR?