COVID-19 Standalone Partial Claim Issue

em6

LoanSafe Member
Sorry if this is the wrong category to post this in, as I didn't see any category for COVID-19 Standalone Partial Claims. But I am fearing that if this issue doesn't get resolved, I could be facing foreclosure.

I've been in COVID-19 Forbearance on my mortgage and it has expired. However, before it expired, my servicer gave me the option to do either a Loan Modification or Standalone Partial Claim. I chose the Standalone Partial Claim to have my past due forbearance balance placed into a zero-interest account and bring my mortgage current so I can continue to make payments.

They said that I just needed to sign paperwork to complete the Standalone Partial Claim process, but it's been about two months and I still haven't received the paperwork to sign. Additionally, my mortgage is still in loss mitigation. So each payment I send in keeps being applied to the past due balance--not my mortgage, which is still showing past due. I've attempted to reach out to them about this, and they keep just telling me to wait until I get the Standalone Partial Claim paperwork to sign.

My question is, should I continue to just make my mortgage payments while my account is in loss mitigation (even though its going to the past due balance that should be moved to the Partial Claim)? I'm fearful that once the Standalone Partial Claim is completed, my mortgage will still be past due for these months that I've been technically out of forbearance.

Any information anyone can provide would be greatly appreciated! Thanks in advance.
 

Moe Bedard

Call 619-379-8999
Staff member
Loan Safe Mortgage
Hello,

This has been a very common problem going back to 2008. My experience is that these 2 months will have to be addressed and they will most likely have to issue new paperwork to cover these months. If you decide not to pay, then things can get worse if they chose to accelerate the process.

Often, it is mortgage servicers employees simply NOT doing their job because they have little oversite just like an employee at any business who simply does not care. If they can be lazy and not do their job, they will. Unfortunately, with these employees being involved with loss mitigation and helping distressed homeowners, people may lose their homes. I have seen it happen many times.

I do not say this to strike fear, but just to be real. With that said, you need to call them every 2 weeks and keep on top of this like white on rice until you get your paperwork. Make sure what you were promised is in their system and you do not get lost in the system.
 
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em6

LoanSafe Member
This is helpful, @Moe Bedard . Thank you so much for the insight.

This coming month will be the first month that I was thinking about just not sending in my payments to avoid them being applied to my account incorrectly. I figured I would just not pay, but still keep the money saved so that I can cover these months out of forbearance (in one lump sum) once the Partial Claim is completed.

Nevertheless, I will continue to keep calling them about it. Hopefully, they will get the Standalone Partial Claim paperwork for me to sign asap.
 

Moe Bedard

Call 619-379-8999
Staff member
Loan Safe Mortgage
You are most welcome!

That is a good plan and what I would do.

Good luck and please let us know how everything turns out.
 
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Survivor_IN

LoanSafe Member
Moe is correct... same story different day!

Here is what I have done in the past. Send a "notice of error" and " legal request" letter to the mortgage servicer via certified mail. State there is an error in that you are paying towards an agreed "stand alone partial claim" for x months and that this accounting be immediately corrected to the date originally expected (the expiration of whatever program) and that they are to immediately send the required documents for signature.

Good luck!
 
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