About a year ago we at the Blog notified you that CitiMortgage and other mortgage servicing companies may have been charging so-called “Property Inspection Fees” in violation of the law. Indeed, several class action lawsuits against Citi and other mortgage servicing companies are currently proceeding in federal court in California.
But those lawsuits don’t focus on you – the high-rise condominium owner. Is your condo above the first floor in a secure building? Would property inspectors be able to get to your floor without your permission? If you answered yes and then no, then the so-called property inspection fees on your monthly statement may be improper.
Here’s how it works. You miss a few payments, go into default, and suddenly you have a monthly mortgage statement littered not only with late fees, but also a variety of new charges for “default services” including property inspections. Codes like INVO may appear on your paperwork or in your mortgage records. Continue reading