I met with a client last week who had a dilemma that I’m afraid is more common than it should be. She is very conservative with her finances and always pays her bills on time. Her homeowner’s insurance coverage had changed last fall, thus her monthly payment amount had changed as well (her taxes and insurance are escrowed so the payment had gone up a little). She failed to take that into consideration and did not notice the change on her monthly statement. So she continued to send her payment in at the amount it had been in the past. Because most lenders/servicers of loans only consider a payment to be made if the full amount is paid, her lender did not recognize the partial payment. By the time she realized what was going on, two months had lapsed. The servicer of the loan, a large bank that we all know, agreed to waive all late fees when the situation was explained. So my customer thought all was well. It wasn’t until we checked her credit that we realized that the payments had been reflected as late – a situation that has now created a difficult obstacle in her attempt to get this resolved (allowing her to get the preferred rate and meet the closing date). We are working with her on that, but I thought this was a great example of something that you can advise clients as you do annual reviews and updates with them.
Right now, Williamson County is in the re-assessment process of many residential homes. This is another area where a monthly payment could increase for borrowers with an escrow account. Just make sure that your clients are aware of this type of situation, where their monthly payment could change based on an escrow change, and tell them to make sure that they make a full payment. I know this sounds simple, but as this example shows, it is something that is easily missed – and can cause tremendous headaches.
Have a great weekend!
Mike
No comments:
Post a Comment