All Forum Posts by: Sam S.

 Joe: Neither the Reinstatement Quote nor the Payoff Quote stated all the access lender-paid expenses which were added on afterwards. They both only included the drive-by appraisal and drive-by property inspection. Clearly, charging these fees to the borrower during foreclosure is like kicking a man when he's down :)

We bought a property subject to existing mortgage. It was behind on payments and was scheduled for foreclosure auction in Texas. Before we brought the mortgage current, the servicer had told us that the Cash Advances for inspection and appraisal that were lender paid can be waived after the mortgage has been brought current. After we brought the mortgage current, the servicer initially denied to waive the Cash Advances. Upon further request, they opened a research ticket which resulted in them coming up with a lot more lender paid expenses than the Cash Advances we asked to waive. The lender paid expenses include Sheriff Costs, Appraisal Fees, Property Inspection Fees, Foreclosure Fee, Title Exam, Certified Mailing Fees, Posting Cost fees, and Recording of the substitute trustee. If we hadn't purchased the property subject to and brought the mortgage current, the lender would have kissed a bulk of the principal good bye. But now that they know we're an investment company, we have been charged with these fees. In retrospect, we would have rather paid the $367 Cash Advance instead of requesting a research ticket because of which they are claiming we owe them $1321 more. Per http://www.alabamaconsumer.com/2014/03/mortgage-servicers-love-hit-consumers-bogus-fees-charges/ it's the servicer charging for it, not the true owner of the loan, and they could be violating FDCPA.

Questions:

1. Can the servicer charge these ridiculous fees?

2. How can we not pay these so called lender paid expenses which weren't initially included in the mortgage reinstatment statement or payoff quotes? 

We are buying a property subject to current mortgage. It's scheduled for foreclosure auction in Tarrant County, Texas on 6/3/2014 (next Tuesday) and we will be closing on it in a few days.

Upon speaking to the lender and foreclosing attorney office about paying the reinstatement amount after the title transfer to bring the mortgage current in order to prevent the foreclosure, we've received different instructions on how to pay. The lender asked us to wire-transfer the amount to the lender where as the foreclosing attorney office asked to overnight mail a certified check made out to the Lender to the foreclosing attorney office. We want to ensure that the property actually gets taken off the foreclosure list after we bring the mortgage current.

Who has the final say, the lender or the foreclosing attorney office, on stopping a foreclosure once the mortgage is made current? Is it the lender because the foreclosing attorney office works for the lender? Or, is it the foreclosing attorney office who is representing the lender for collecting a debt, just like all negotiations for a personal debt collection has to be handled with the collections agency after it's been reported as a collections item?