Second Mortgage

How to prove a mortgage payment? 

We’re about to take out a mortgage, and you can be reading about mortgage servicing fraud, where even though you send payment on time.

They cash the check but don’t update your records, then they add late fees, take out hazard insurance, send it to collection, and the whole thing snowballs from there.

So in preperation for doing everything right, what is the best way to pay a mortgage so you can prevent this from happening. Online Bill Pay? or Certified Mail?  Which payment method makes it the hardest for a bad mortgage servicing company to pull this scam?

It seems most answerers (if that’s a word) don’t know that mortgage servicing is often outsourced as part of the bank selling the loan package as a security. That means that no mortgage borrower has any control over who their mortgage servicer is.

The original lender often doesn’t service the loan. Unfortunately, mortgage servicers can do what they want. Selecting a reputable lender has nothing to do with it. Also, both Wells Fargo and CitiBank are known to conduct the same scam, ‘misplacing’ a mortgage payment and then pushing the loan into default, through no fault of the borrower.

It’s a well known, and completely calculated strategy, and is completely 100% immoral. So the question is how you best prove payments, and the question is probably directed towards people who have been target by their mortgage servicing company.

As there is zero legal recourse, mortgage servicing fraud is much more serious than predatory lending. And nobody is completely safe.