BCS in North Carolina said: “1. Prepayment penalties are written into a mortgage note, and can not be waived. They are part of a legal document. Even if a loan is sold, the note remains the same. There is no magic wand that makes it go away.
2. When the consumer can not prove they have homeowner’s insurance on the property, they are charged vendors insurance, forced-placed insurance provided by the lender, which protects the lender against loss to the uninsured property. The consumer is charged for the forced-placed insurance. Why, because they either have allowed the homeowners insurance to elapse by non-payment or they are too lazy to submit proof of insurance. The burden of proof is on the consumer and is part of the note and deed of trust. Thou must be insured.
3. Mortgage terms never change even when a mortgage is sold to another lender, unless a new note or modification are signed. Terms are always honored. The monthly payment will go up if late charges are assessed, forced-placed insurance is tacked on, and deferred interest accumulates.
4. If a loan is not escrowed before it is sold to another lender, then it is not escrowed if another lender takes over the loan. Escrow just doesnt happen.
5. Lenders can not, repeat can not, tell you they will positively refi your loan in the future. Why? Underwriting changes, market values change and credit profiles change. They may suggest you can refi in the future, and they would like to do that, but only if you and our property qualifies.
Sometimes consumers only hear and think, what they want to hear and think.”
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