QUESTION
Can a Lender be forced to fix and honor a Reinstatement Quote to Cure Default they offered to a Borrower in Foreclosure?
Asked on Nov 17th, 2021 on Foreclosures - Pennsylvania
More details to this question:
Borrower asked for a Reinstatement Quote (RQ). Lender sent one but with errors (Added an extra year of payments not due yet). Borrower let Lender know, who acknowledged, but decided to not fix and let lawyers foreclose. The RQ clearly shows the date of offering and the dates through which the mortgage payments were being included, so that instead of it being $8k it was $22k. The Lender abandoned communications and let the lawyers proceed on complaint of foreclosure. Currently they are sending RQs of over $75k which include over $20k of lawyer fees. I would like to force the honoring of the RQ as of the date they began breaking the law (It is illegal to include sums not yet owed) and denying my right to cure default as per the ACT 91 at any time up to 1 hr before Sheriff's Sale. After that I'd like to sue them for every RESPA violation which I have identified as being over a dozen with varying 'relief' amounts I am entitled to. But first things first.
1 ANSWER
Bankruptcy Attorney serving Collegeville, PA
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Nahrgang & Associates, P.C.
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One key aspect of the right to reinstatement is that the exact reinstatement figure be paid to the penny which can change up to and including the time it is paid. Indeed, every payoff or reinstatement letter will note that the borrower must call before paying to assure the stated number remains accurate.
Often, statement letters are generated which contain those numbers but they are rarely the true numbers which are only obtained through foreclosure counsel who will add in contractual attorneys fees, etc. If you believe that the reinstatement figure is inaccurate, that would be a defense to the foreclosure case, but my experience is that mortgage company numbers are usually very accurate, if not easily understood.
I trust this has been helpful and, if you are in the Delaware Valley, feel free to call or email me on a free initial basis.
Best Regards,
Matthew R. Nahrgang, Esquire
35 Evansburg Road, Ste 400
Collegeville, PA 19426
(610) 489-3041 o
(610) 489-3042 fax
nahrganglaw.com
Answered on Nov 18th, 2021 at 9:54 AM