When your mortgage is transferred between servicers, errors are common — misdirected payments, lost records, dual servicing, and improper fees. Learn your rights under RESPA's transfer rules and how transfer errors create defenses and counterclaims in foreclosure.
Get Free Case ReviewUnder RESPA §6 and Regulation X, servicers must send transfer notices at least 15 days before the effective date, there is a 60-day grace period during which payments sent to the old servicer cannot be treated as late, and the new servicer must honor existing loss mitigation agreements. Common transfer errors: payments made during transition are lost or misapplied, both old and new servicer report delinquencies causing double reporting on credit, loss mitigation applications are lost requiring complete re-submission, and fees/escrow balances are incorrectly calculated during transfer. These errors create genuine disputes over the amount owed, support RESPA claims, and can provide defenses to foreclosure. Key remedies: written notice of error disputing the transferred balance, demand for complete payment history from both servicers, and CFPB complaint for transfer violations. See: RESPA Guide.
Servicing transfers commonly cause payment errors. We reconstruct payment histories and dispute transfer-related charges.
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