Q-I am writing to warn you and your readers about a mortgage loan servicing scam in which we almost got mixed up. We received a nicely typed letter on fancy stationery from a company in Dallas, which said our home mortgage had been transferred there for loan servicing. The letter said we soon would be receiving a new loan payment coupon booklet, but to send our next payment in the enclosed postpaid envelope.
Since we have an adjustable rate mortgage, our current loan servicer sends us a monthly bill because our payment amount changes frequently, so I thought it was rather strange that we would be receiving a payment coupon booklet. I had not heard anything from our current loan servicer, so I used their 800-toll free number to inquire. The clerk said she had no record of any transfer of our loan servicing. Then I realized this is a scam, so I wrote to the Dallas police department, but have not heard anything back yet. I tried to call the loan servicer in Dallas, but the phone company there has no listing for this firm. Have you ever heard of such a scam?
A-Yes. Thank you for alerting us to this mortgage loan servicing scam, which, according to my sources, is being worked in different parts of the country. Since you almost fell for it, I think you can see how a less intelligent person might easily become a victim by sending loan payments to the phony loan servicer.
As you may know, the loan servicing business is a multi-billion dollar industry. The consumer is the victim when the loan-servicing on a locally originated mortgage is transferred out-of-town and it becomes difficult to make certain each payment is properly credited. I know from personal experience because I have one loan that has been transferred to six different loan servicers, sometimes without informing me when one servicer passed my payments on to another.
Borrowers should not blindly send loan payments to a new loan servicer without receiving an authorized letter from the current loan servicer informing the borrower of the loan servicing transfer.
While we are on the subject of loan servicing scams, another favorite dirty trick is for the out-of-town loan servicer to claim a payment was received just after the grace period. If you have mailed your loan payment in plenty of time to be received before the end of the 10- or 15-day grace period, insist, before paying a late fee, that the loan servicer send you a copy of your payment envelope showing the postmark and the date-received stamp.
Joint tenancy easily severed
Q-I took title to my house in joint tenancy with my girlfriend. The loan officer pushed us to take title as joint tenants with right of survivorship. He said we could change it later. But now my girlfriend refuses to change the title to tenants in common, so we can each make our one-half subject to our wills. How can I get out of this joint tenancy?
A-In most states, one joint tenant can execute a quit claim deed from himself as a joint tenant to himself as a tenant in common. Since there are only two joint tenants in your situation, such action ends the joint tenancy with right of survivorship. However, when a husband and wife hold title as joint tenants by the entirety the signatures of both spouses are required. Please consult your attorney for more details.
Sewer fee can be deductible
Q-In our town, each homeowner pays a $50 per month sewer service fee as part of the water bill. The purpose was to build a new sewerworks. However, I have heard it would be better to add the sewer service fee to our real estate tax bill, so we can deduct it on our federal income tax returns. Is this true? A-Yes. Real estate taxes on your principal residence qualify as an itemized deduction on your federal income tax return. Since each homeowner in your town is paying $600 per year for that fancy new sewerworks, it would be to your advantage to eliminate the sewer tax and increase your real estate taxes by that amount to make the $600 deductible on your federal tax returns. Many cities include sewer fees as part of the local property taxes. For more details, please consult your tax adviser.
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Please note: Real estate laws differ from place to place, and laws of your area should be checked before making decisions on real estate problems.
