Question by Jeff S: Can my mortgage broker foreclose on me?
In march I did a FHA refi. the mortgage broker messed up big time on my escrow and put me in a big bind. FHA kicked the loan back and is not insuranable so the broker wants me to sign a modification agreement. I refused to sign it till they correct their mistake. They then told me that they can forelcose. Is this possible?
Best answer:
Answer by golferwhoworks
not the broker– FHA
Know better? Leave your own answer in the comments!
The broker can’t foreclose on your home. The FHA lender can.
What kind of mess up? When you say your escrow, do you mean your reserve account? What is the modification? Sounds to me as if the broker will be the one out of pocket on this one. If your broker gets “funny” about the mess up, you may want to explain to them that you think they may be in violation of RESPA regulations and inform HUD of their practices. Without all the details that’s about all the advise I can offer.
Hey Jeff, you might want to check out this website, you can get a lot of useful information on the topic.
https://therena.com/?utm_source=blog&utm_medium=blog%252Bfeedaback&utm_content=godevsite-track-1&utm_campaign=TheRENA%252CEvents%252CThe%252BReal%252BEstate%252BNational%252BAssociation%252C
They may be able to. Chances are they had to buy the loan back from FHA and your payments will be due to them. So if you fall behind they could foreclose on you…..Here’s the kicker, if there was an error in your escrow account it will be corrected sooner or later. By law whoever services your mortgage has to do an escrow analysis. Now if they are only collecting $ 100 a month for you taxes and they should be collecting $ 200, you’re payment will skyrocket because you will be negative money in your escrow account. So be careful