A review of many of the foreclosure related sites on the internet reveals that there are many misunderstandings with respect to how to utilize
QWRs in the foreclosure process. Contrary to popular belief, you cannot simply
ask for everything under the sun and expect results with a QWR. Your best bet
when requesting information from a servicer is to ensure that the requests are
specific and reasonably related to the servicing of the loan.
Under the Real Estate Settlement Procedures Act (RESPA), Servicers
are required to respond to “qualified written requests”and take necessary steps
to correct highlighted errors to the homeowner’s account in a timely
fashion. If a servicer fails to provide a written response acknowledging
receipt of the qualified written request no later than 5 days after receipt of
the QWR, fails to make appropriate corrections to the Homeowner’s account in
response to the QWR, including the crediting of any late charges or penalties,
and/or fails to transmit written notice of such corrections to the Homeowner no
later than 30 days after receipt of the Homeowner’s QWR, the servicer may be
liable for RESPA violations. A servicer can further be found to violate
RESPA, by failing to provide the Homeowner with the information and
documentation requested, or an explanation why the information sought was
unavailable, no later than 30 days after receipt of the Homeowner’s QWR or by
refusing to cease its collection efforts and foreclosure proceedings during the
period while it is making the investigation required by the QWR.
RESPA violations are significant. They may assist in the defense
of a pending foreclosure action against the homeowner although it is important
to note that a RESPA violation all by itself will typically not defeat a
foreclosure case in Maryland. More importantly RESPA violations can entitle the
homeowner to bring an action for damages against the servicer. Such actions
could result in the award of actual damages, statutory damages of up to $2000
per violation as well as costs and attorneys fees.
If you are considering sending your servicer a QWR or if your
servicer has not replied to your requests for information, you should speak to
a qualified attorney to explore your options. QWRs are an excellent tool, they
just have to be used properly.