You miss a payment or two – and wham! Suddenly your monthly mortgage statement is littered not only with late fees, but with a variety of new charges you have never seen before and may not understand. Among them: Your lender might be charging you for unnecessary property inspections (http://www.nolo.com/legal-encyclopedia/what-fees-can-the-lender-charge-if-im-late-mortgage-payments.html). Several mortgage lenders and servicers, including Citi Mortgage, appear to be automatically charging borrowers for inspections to make sure their homes are occupied – even if there is no reason to believe the home has been abandoned.
In a growing number of class actions, homeowners say that inspection fees and other unreasonable, unauthorized fees are being tacked onto their statements automatically when they are late on payments. The mortgage companies allegedly program their computers to order the inspections after an account becomes a certain number of days past due. There is no human review or assessment of the account before the inspections are ordered, according to these lawsuits. And the inspections continue on an automated basis, sometimes as often as monthly.
The property inspection fees are typically small – in the range of $10 to $15. But since they are often charged monthly, they can add up (http://www.nolo.com/legal-encyclopedia/challenging-late-other-fees-foreclosure.html). Homeowners must pay these fees in order to save their homes from foreclosure. Mortgage companies typically won’t reinstate a loan and halt the foreclosure process until all of the fees are paid, or even added to the balance of the loan. In some cases, homeowners have to pay these fees even when their homes are foreclosed. They are often deducted from the proceeds of the foreclosure sale. Continue reading