- Real Estate
How To Stop Foreclosure Dead In Its Tracks Using a QWR
There is a little known yet very powerful defense available to homeowners under the RESPA Act (Real Estate Settlement Procedures Act) that can be used to verify the total amount due by the homeowner during foreclosure, which is called a Qualified Written Request (QWR). The Qualified Written Request allows the homeowner to dispute the account information with the lender and/or servicer. When the lender and/or servicer receives a QWR from a homeowner, they are required BY LAW to provide ALL requested information within a certain amount of time (often within 30 days).
A homeowner will often request a complete accounting and payment history with regards to their loan (including all loan and escrow payments), itemization of any changes in the interest rate of the loan with regards to payment history, along with how the changes were calculated (to rule out any discrepancies with the promissary note), copies of all loan and closing documents (which may include the note, mortgage/deed of trust, HUD-1 settlement statements).
It is ESSENTIAL that homeowners keep copies/receipts of ALL payments made, along with correspondence from the servicers with regards to changes in payment amounts, changes in servicers, etc.
Any changes in the monthly payments should be carefully scrutinized and disputed if there are any errors.
Another CRITICAL request that should be made by the homeowner is the itemization of ALL fees related to the foreclosure, including the amount in "arrears" which is claimed to be due by the homeowner in order to bring the mortgage current again. These fees are often inflated, and in many instances for things that never even happened, such as inspection fees, attorneys fees, etc.
It is now common knowledge that the "Banks" did not keep adequate records in documenting the ownership and transfer of the mortgages, and as a result have resorted to using false documents in order to foreclose. When a homeowner uses a QWR to force the bank to prove their case, the bank is put on the defensive and will not be able to comply with these requests, putting the homeowner at an advantage when it comes to any negotiations or lawsuits that may be initiated.
For this reason, most if not all of the QWR requests submitted by the homeowners will be ignored, as it has been been difficult if not impossible for the "Banks" to obey the law and provide the requested information to the homeowners within the required time frame, due to the rampant F-R-A-U-D that has been committed in the foreclosure process. With forged and robo-signed documents being used in an attempt to foreclose, it is HIGHLY likely that the "Banks" will have the same amount of difficulty in providing the requested documents to the homeowner.
If the homeowner is able to bring the mortgage current again through a payment arrangment, MAKE SURE THE AGREEMENT IS IN WRITING!! Otherwise, any payments that are made will be placed into what is called a "suspense account" and will be applied towards the "fees" and other amounts related to the outstanding balance, in addition to still being liable for any future montly payments that are due.