Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next
Author: Mark12547 Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 4337  
Subject: Mortgage Auditing Program Date: 5/5/2012 11:05 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 2
Good evening, fellow members!

Today I received this letter from Mortgage Auditing Program in my mail:

---------------------------------------------

[Member Name]

This notice is to inform you that you may be owed a refund of several thousand dollars from your mortgage lender. Records show that you signed for a home loan on [date] and that your loan amount was $[amount].

Government studies by the FDIC as well as financial audits of lenders have shown that thousands of mortgages contain mistakes or overcharges. Your monthly mortgage payment may have been miscalculated and you may be due a refund from either your current or previous mortgage lender.

The average refund is $1,497.32 and one third of the refunds equal $3,000 to $7,500.00.

You are eligible for a mortgage analysis and refund review.

Please call 888-xxx-xxxx and reference case # [case number] to begin your refund review.

---------------------------------------------

(I have replaced names, dates and other potential personal identifying information with [tags].)

I have come across a few news articles about the company:

http://www.wxyz.com/dpp/money/consumer/dont_waste_your_money...

http://www.abc-7.com/story/16059320/experts-caution-against-...

http://www.thepeoplescommunitybank.com/home/news/announcemen...

Some things that aren't mention in the letter are:

1. There is a fee associated with a mortgage audit, the articles quoting somewhere between $249 and $299.

2. For most people, the mortgage is calculated right and an audit is thus not worth the money and won't indicate any refund. Notice the letter said "thousands of mortgages contain mistakes or overcharges" but didn't mention that there are 48,394,000 mortgage in the United states. Even if "thousands" means 4,000, that's still only 1 in 10,000 mortgages with a mistake or overcharge. (The odds of errors get better with an adjustable rate mortgage: 20% to 25% of adjustable rate mortgages have errors, as per the Government Accountability Office in a 1991 study. The FSLIC in 1995 concluded that 50% to 60% of all ARMs have errors in the rates charged to home owners.)

3. Even if the audit indicates you are due a refund, you still have to use your own means to get that refund, which means contacting the mortgage lender and, in extreme cases, suing the mortgage lender.

My letter is going into the shredder. I did indeed take out a fixed-rate mortgage on [date] for $[amount], but I had checked with a couple on-line mortgage calculators and saw that interest was accurately calculated and principal was going down by the correct amount.

--Mark
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (2) | Ignore Thread Prev | Next

Announcements

Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement