5 Warning Signs That Your Mortgage Servicer Is Violating Ohio Foreclosure Laws
Those facing the possibility of foreclosure know how stressful it can be. When mortgage servicers mishandle accounts, it can make matters far worse. However, state and federal laws give borrowers important protections, but violations often go unnoticed until it’s too late. Knowing the red flags can help you spot misconduct early and protect your rights.
#1. Improper or missing notices
Before your lender files for foreclosure, they must first provide specific notices under Ohio law and federal mortgage servicing regulations. You, as a borrower, should receive clear communication about missed payments, opportunities to cure the default, and information about alternatives such as loan modifications. If notices are confusing, contradictory, or not even there, this is a serious warning sign. Lack of proper notice may give you a defense in foreclosure proceedings.
#2. Failure to acknowledge loss mitigation applications
Federal law requires loan servicers to promptly acknowledge the receipt of applications for loss mitigation (loan modification, repayment plans, forbearance, etc.). Loan servicers must review documents within a specific timeframe. They cannot move forward with foreclosure while a complete application is pending. If your paperwork seems to vanish or you receive no confirmation, the loan servicer may be violating your rights.
#3. Misapplied or missing payments
One common problem borrowers endure is servicers misapplying payments and putting them toward fees or future balances rather than past due amounts. Some borrowers find that their payments have been lost altogether. Inaccurate accounting can create a false appearance of default, which would end up fast-tracking you toward foreclosure. You should always keep detailed records of your payments and request a full accounting if the loan servicer’s numbers don’t match your records.
#4. Dual Tracking
“Dual tracking” occurs when a mortgage servicer pursues foreclosure while simultaneously telling the homeowner they are being reviewed for a modification. This practice is generally illegal under federal rules because it creates confusion and undermines opportunities to resolve the issue. If you receive foreclosure notices while in active discussions about a workout plan, this might be illegal.
#5. Excessive or unexplained fees
Mortgage servicers are permitted to charge some fees, but they must be legitimate and properly disclosed. As a consumer, you should watch out for unexplained charges such as repeated inspection fees, property preservation fees, or inflated late fees. Such unjustified fees can push homeowners further into default and may violate both Ohio and federal consumer protection laws.
Protecting yourself
If you suspect that your servicer is acting improperly, you should not ignore the problem. Save all your correspondence, track every payment, and document your interactions. Contacting an attorney who understands Ohio foreclosure defense is usually the best way to protect your home. Lawyers familiar with such issues can challenge violations, negotiate with lenders, and sometimes get cases dismissed.
Talk to a Columbus, OH, Foreclosure Defense Lawyer Today
Kohl & Cook Law Firm, LLC, represents the interests of borrowers in foreclosure defense actions. Call our Columbus foreclosure defense lawyers today to schedule an appointment, and we can begin discussing your next steps right away.
