Respa Short Sale Requirements

Summary

Under the Real Estate Settlement Procedures Act (RESPA), servicers must provide specific information in short sale or short payoff offers, including the outstanding debt, short sale offer amount, any deficiency amount, and terms of the offer. These requirements are detailed in Section 1024.41 of RESPA (Regulation X).

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What section of * contains these requirements
Section *.* of RESPA (Regulation X) contains the requirements for loss mitigation procedures, including short sale or short payoff offers. It outlines the servicer's obligations to provide specific information to the borrower.
Do you need help with anything else related to this section?
should the servicer provide a payoff quote to support their statement of the outstanding debt
Yes, under RESPA, the servicer should provide a payoff quote to support the statement of the outstanding debt. This ensures transparency and accuracy in the loss mitigation process.
Do you need more details on how to request a payoff quote, or any other related information?
should the servicer support the short sale offer with the current appraisal of the property
Case Rating: *.
Under RESPA, the servicer is not explicitly required to support the short sale offer with the current appraisal of the property. However, providing an appraisal can help justify the offer amount and facilitate the approval process.
Would you like to know more about how to obtain an appraisal or how to proceed with the short sale?
The alleged servicer identified itself as debt collector not as servicer on the behalf of the alleged account owner. so I would be paying the alleged settlement amount to the alleged servicer with no apparent assurance that the debt would go to the alleged owner of the mortgage. What could potentially be wrong with that?
It sounds like there might be several potential issues:
- Verification of the debt: Ensure the debt collector is authorized to collect on behalf of the mortgage owner.
- Proper identification: The servicer should identify themselves correctly.
- Assurance of payment: Ensure payments go to the rightful owner of the debt.
Have you received any written verification of the debt from the alleged servicer?
Written verification provided by the servicer is not satisfactory and does not meet requirements of * CMR *.*(*)
It seems you have concerns regarding the debt collector's identification and the verification provided. Under Massachusetts regulation * CMR *.*(*), the debt collector must provide the following:
- The amount of the debt.
- The name of the creditor.
- A statement that unless the consumer disputes the validity of the debt within 30 days, the debt will be assumed valid.
- A statement that if the consumer disputes the debt, the debt collector will provide verification.
Do you need assistance with how to dispute this verification or take further action?
how to dispute this verification or take further action
To dispute the verification or take further action under Massachusetts regulation * CMR *.*(*):
- Send a written dispute to the debt collector within 30 days of receiving the verification.
- Clearly state that you dispute the debt and request proper verification.
- Keep copies of all correspondence for your records.
Would you like more specific guidance on drafting the dispute letter?
yes
To draft a dispute letter under Massachusetts regulation * CMR *.*(*), you should include the following:
- Your name and address.
- Debt collector's name and address.
- A clear statement disputing the debt.
- Request for proper verification.
- Date and your signature.
Would you like a sample template for the dispute letter?
yes
Here's a sample template for the dispute letter:
---
[Your Name]
[Your Address]
[City, State, ZIP Code]
[Email Address]
[Phone Number]
[Date]
[Debt Collector’s Name]
[Debt Collector’s Address]
[City, State, ZIP Code]
Subject: Dispute of Debt Verification
Dear [Debt Collector’s Name],
I am writing to dispute the debt referenced in your letter dated [date of the letter]. According to Massachusetts regulation * CMR *.*(*), I am requesting proper verification of the debt.
Please provide the following:
- The amount of the debt.
- The name of the creditor to whom the debt is owed.
- Verification and documentation that I am obligated to pay the debt.
I request that all collection activities cease until proper verification has been provided.
Thank you for your prompt attention to this matter.
Sincerely,
[Your Name]
[Signature]
---
Would you like additional information on how to send this letter or follow up on the dispute?
* CMR *.*(*) states: "If the debtor, or any attorney for the debtor, notifies the creditor in writing within the *-day period described in * CMR *.*(*), that the debt, or any portion thereof, is disputed, the creditor shall cease collection of the debt, or any disputed portion thereof, until the creditor verifies the debt and provides the debtor, or any attorney of the debtor, by first class mail, the following materials: (a) All documents, including electronic records or images, which bear the signature of the debtor and which concern the debt being collected
To dispute the verification or take further action under Massachusetts regulation * CMR *.*(*):
- Send a written dispute to the debt collector within 30 days of receiving the verification.
- Clearly state that you dispute the debt and request proper verification.
- Keep copies of all correspondence for your records.
Would you like more specific guidance on drafting the dispute letter or need further assistance with another matter?
I already notified the servicer of the requirements of this regulation but they refused to provide the documents as required. What is my possible recourse action ?
You may consider taking the following actions:
- File a complaint with the Consumer Financial Protection Bureau (CFPB).
- Submit a complaint to the Massachusetts Attorney General's Office.
- Consult with a consumer protection attorney to explore legal remedies.
Would you like more information on how to file a complaint?
How should I force the servicer to provide the documents required.
If the servicer refuses to provide the required documents under * CMR *.*(*), you can take the following steps:
- File a complaint with the Massachusetts Attorney General's Office.
- Consider contacting a consumer rights attorney to explore legal action.
- Report to the Consumer Financial Protection Bureau (CFPB).
Would you like more details on any of these steps?
the servicer has not ceased the collection efforts against this regulation which requires that servicer "shall cease collection of the debt" What should I do about that?
You can take the following steps if the servicer hasn't ceased collection efforts:
- File a complaint with the Massachusetts Attorney General's Office.
- Report the issue to the Consumer Financial Protection Bureau (CFPB).
- Consider contacting a consumer rights attorney for further legal action.
Would you like more detailed information on how to file a complaint?
if the service has been sending to me "Early Intervention Notices" with the frequency of less than 180 days (at the least four latest notices) is that grounds for invalidating future foreclosure under RESPA?
Under RESPA, servicers must provide early intervention notices every 180 days if the borrower remains delinquent. Receiving notices more frequently could indicate non-compliance.
Would you like more information on how to challenge this potential RESPA violation?
Separately, if the service has been sending to me "Early Intervention Notices" with the frequency of less than 180 days (at the least four latest notices) as required by RESPA is that grounds for invalidating future foreclosure?
Under RESPA, the servicer must send Early Intervention Notices at least every 180 days. Failure to comply may be grounds to contest future foreclosure.
Would you like more information on how to proceed with this issue?
yes
Case Rating: *.
Under RESPA, non-compliance with the *-day notice requirement can be grounds for invalidating future foreclosure actions. You should document all notices received and their dates.
Would you like help with drafting a complaint or contacting an attorney for further assistance?
To clarify RESPA requires EIN to be sent not sooner than every 180 days but no later than 190 days
If the servicer has been sending "Early Intervention Notices" more frequently than every 180 days, it may be grounds to contest future foreclosure.
You can:
- File a complaint with the Consumer Financial Protection Bureau (CFPB).
- Seek advice from a consumer rights attorney.
Would you like more information on filing a complaint or finding an attorney?
How should I proceed
It seems like you have a strong case for potential legal action. Here are steps to proceed:
- File a complaint with the Massachusetts Attorney General's Office.
- Report the issue to the Consumer Financial Protection Bureau (CFPB).
- Consult a consumer rights attorney to explore legal action.
Would you like more detailed information on any of these steps?