Is it fair to sue my mortgage company under RESPA after sending a Notice Of Error letter?

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Is it fair to sue my mortgage company under RESPA after sending a Notice Of Error letter?

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You have sent them a notice of error letter asking the company to investigate and fix the error. They don’t do it. Is it proper to sue them in this situation?

Often, the company will react by falling apart and saying “How could you sue us?”

Let’s step back and review the situation.

The mortgage company has received the notice of error letter.

The company has 30 business days to provide a substantive response.  This means they should do a complete, thorough, proper investigation. If there is no problem, they tell you. If there is a problem, they fix it.

They have 30 business days. 6 whole weeks to conduct this investigation and provide a response.

If they fix the error completely, including any damages which were incurred as a result of the error, then there is no longer a problem.

Now, imagine this scenario:

The police call me and say, “Hey John, we think you robbed the First National Bank of $100,000.”

I reply, “Do I have to tell you right now?”

The police say, “No, you have 6 weeks. Think about this. Carefully investigate whether you have done anything wrong. If you have done anything wrong, just give the money back. No hard feelings.”

This is the position that the mortgage companies are in. This is a tremendous opportunity for them to do the right thing and avoid trouble.

The mortgage companies almost always fail to conduct a proper investigation.

When they are questioned for their deposition, they reveal they have not contacted anyone or conducted any research on the situation.

They simply rely on what is already in their computer files.

In the past, this could slide. However, this is no longer the case.

The mortgage company must conduct a real investigation. If they do not investigate and resolve the issue, you can sue them.

This is completely fair and appropriate.

They have had their opportunity and plenty of time to resolve the issue.

We hope this is helpful to you!

If you live in Alabama and you have any questions, feel free to get in touch with us.

We would be glad to help you in any way we can.

You can reach us by phone at 1-205-879-2447, or you can fill out a contact form and we will get in touch with you quickly. 

Thanks for reading, and have a great day!

-John Watts

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