Loan Servicing

Home loan servicers are companies that manage the day-to-day administrative tasks of a mortgage, acting as an intermediary between the borrower and the lender or investor who owns the loan. At the Law Office of Christopher Hewitt, we help clients with issues with their loan servicing companies protect their homes. In recent years, many clients have contacted us with questions about a company called the Specialized Loan Servicing LLC, located at 6200 S Quebec St, Greenwood Village, CO, 80111.

Why Loan Servicing
Typically, the lender chooses to use a loan servicing company. When a loan is initially issued, the lender either has an in-house servicing department or contracts with an external loan servicing company to handle the day-to-day loan management. In many cases, lenders may sell the loan to investors in the secondary market but retain the servicing rights or transfer them to another servicing company. Even though the lender that originated the loan may no longer own it, they or another designated company will still manage the loan servicing. Borrowers typically do not have a say in who services their loan and may find that their loan servicing is transferred one or more times during the life of the loan. When a loan servicing transfer occurs, borrowers are notified in advance by the old and new loan servicers, as required by law, to ensure they know where to send their payments.

Loan Servicers Duties
Loan Servicers collect monthly mortgage payments from borrowers, including principal, interest, and escrow amounts. They manage escrow accounts to pay for property taxes, homeowners insurance, and potentially other items like private mortgage insurance (PMI). Ideally, a good loan servicer can answer customer questions, provide account statements, and help with any issues a borrower may face. If a borrower fails to make mortgage payments to a loan servicer, the loan servicer will handle the default process, which may end in foreclosure.

Issues with Loan Servicers
Because borrowers have mortgages for 15 to 30 years, the relationship that they have with their loan servicer is an important one. If the borrower is stuck with a loan servicer who does not specialize in providing satisfactory service to the borrower, there is little the borrower can do besides contact an attorney.

Types of complaints people have with their loan servicing companies:

  • Poor Customer Service and Mismanagement of Account Issues
  • Delays in Escrow Refund Processing
  • Inefficiency and Lack of Responsiveness
  • Unprofessional Customer Service
  • Questionable Business Practices

If you have issues with Specialized Loan Servicing LLC or any other loan servicing company, please contact me so I can help protect your home against foreclosure.



Frequently Asked Questions: Debt Consolidation in California
How does debt consolidation affect credit scores?

Initially, it might cause a slight dip due to credit inquiries. However, consistent payments can improve your credit score over time.

What is the difference between debt consolidation and debt settlement?

Debt consolidation involves taking a new loan to pay off debts, while debt settlement is negotiating to pay less than you owe. Settlement can negatively impact your credit score.

What are secured vs. unsecured debt consolidation loans?

Secured loans require collateral (like a house or car), usually with lower interest rates. Unsecured loans don't require collateral but typically have higher rates.

Is debt consolidation right for me?

It depends on your total debt, interest rates, credit score, and payment capability. It's suitable if you can pay off your debt within five years and secure a lower interest rate than your current debts.

Should I consider long-term financial planning?

Yes, debt consolidation should be part of a broader financial strategy including budgeting, cutting expenses, and building an emergency fund.

How do Chapter 7 and Chapter 13 bankruptcies in California differ?

Chapter 7 involves liquidating assets to pay off debts, while Chapter 13 allows debt restructuring over a set period, usually three to five years.

Can my spouse's bank account be garnished for my debt?

Bankruptcy laws offer protections against such actions, but specifics depend on individual cases and state laws.

How can I learn more about my options?

Consulting a California bankruptcy attorney can provide clarity. Firms like The Law Offices of Christopher Hewitt offer free consultations to explore debt relief paths.

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