Oftentimes when a homeowner is applying for a loan modification, the mortgage company (especially the big mortgage servicers) will lose the homeowner’s loan modification paperwork and will ask for the same documents over and over again.

This can be a very frustrating experience for families already going through a stressful time in their lives. The mortgage company’s negligence here can even result in the family losing their home to foreclosure if they don’t stand up and assert their rights.

One of those rights is what is called a Notice of Error under the Real Estate Settlement Procedures Act (“RESPA”). Among many consumer rights, one of the important rights this federal law grants to our homeowners is the right to send your mortgage company a letter called a Notice of Error. This is your opportunity to bring this problem to the attention of your mortgage company in a formal way.

You should mail the Notice of Error to your mortgage company via certified mail. In the letter, be sure to include your loan number, property address, and a detailed description of the errors the mortgage company is making during your loan modification application process.

Be sure to include any pertinent documentation with your Notice of Error. Be sure to save a copy of the Notice of Error for your records along with the tracking number from the post office.

Once your mortgage company receives your Notice of Error, they are required to acknowledge receipt of your Notice of Error within five business days. The mortgage company is then required to respond substantively to your Notice of Error within thirty calendar days from receipt. Failure of your mortgage company to follow these deadlines set forth under federal law can constitute violations of RESPA.

If your mortgage company fails to respond timely or if their response is insufficient, you can either 1) send another Notice of Error and include any additional information that may not have been included in the first Notice of Error or 2) file a lawsuit against your lender for violations of RESPA. If you end up having the need to file suit, I would definitely suggest consulting with a competent consumer attorney.

If you would like to review a sample Notice of Error and learn more about the Notice of Error process, CLICK HERE for excellent information released by the federal Consumer Financial Protection Bureau (“CFPB”).


Best Regards,


Ryan C. Torrens, Esq.

Consumer litigation attorney