Were You Charged Excessive Fees After Defaulting on Your Mortgage Loan?
Excessive Mortgage Default Fees
Homeowners who were charged excessive fees after being late on their mortgage payments may be entitled to compensation. When a mortgage borrower defaults or their loan or enters delinquency status, their lender is permitted to assess fees related to various default-related services, such as property inspection, that are designed to protect their interest in the property. It has been alleged, however, that certain banks and mortgage servicers have been overcharging borrowers for these services, some of which are unnecessary, in an attempt to quietly profit from already-struggling homeowners.
If you have ever been late on your mortgage payments, such that your account becomes delinquent or you defaulted on your loan, you may have been charged these excessive fees. To find out whether your mortgage default fees were excessive, fill out our free case review form today to have your claim evaluated at no cost for you. You may be able to seek compensation for any excessive fees you were charged.
Mortgage Default Fees: How Do I Know If I Was Overcharged?
Default-related services are typically performed by third-party vendors, and rather than charge the borrower for the actual cost of the default-related services, some banks and lenders are allegedly assessing significantly marked-up fees. To determine whether you may have been charged excessive fees, examine the mortgage statements you received after you were late on your payments and went into a delinquent or default status on your loan. If you notice any fees that you do not recognize, it is possible that you may have been overcharged.
Depending on your lender, these fees may read as the following on your statement:
- Delinquency expenses
- Other charges
- Other fees
- Corporate Advances
- Miscellaneous Fees
Furthermore, if you ever received an Acceleration Warning Letter (or Notice of Intent to Foreclosure), you should check these documents for any unrecognizable charges.
What are Delinquency Expenses?
Many banks are said to be listing their default-related services as delinquency expenses, and identifying these charges as third-party expenses for a number of services, including property inspection and appraisal costs, required as a result of the default. According to recent allegations, some banks and mortgage servicers are not fully disclosing the true nature of these fees and failing to itemize these services, providing no way for the borrower to determine which services they were charged for and the cost of each service. Furthermore, it has been alleged that some banks and lenders are using loan management systems which automatically order property inspections and charge borrowers for these services after their accounts have been delinquent for a certain number of days, regardless of whether these inspections are actually necessary.
Excessive Mortgage Default Fees: Class Action
If you were charged excessive fees after being behind on your mortgage payments, you may be able to file a claim against your lender to recover compensation for these charges, and any other losses you suffered as a result. To learn more about your eligibility for compensation, fill out our free case review form today. There is no cost or obligation to have your situation evaluated.