Quote from Nick Hawryluk on July 19, 2024, 5:00 pm

Hi Roman.

You've hit a number of points here.  Let me see if I can offer some guidance...

- None of the documents you are sending in a Welcome Kit are required to be sent to the borrower.  Therefore, in a legal sense, it doesn't matter if they say they received them or not.

- For any documents that are required to be sent, there is a bit of grey area here so I'll explain it how I understand it.

1. The best way to ensure a document is received is to send it Certified Mail.  This is generally required for legal docs to ensure delivery.  If they deny/refuse the letter, it is not a legal defense for them to say they didn't get it.
2. It's not really practical to send everything Certified so it's more common to send USPS Priority with tracking or via FedEx.  The delivery confirmation is enough to prove delivery, within reason.
3. Lastly, in any legal case where documentation was important, having a copy of the dated letter included in the legal filings was enough to prove that it was sent.  This is the grey area where they are taking your word for it but, it's never been an issue. This is how I've always seen the Hello/Goodbye letters documented.  This leads me to...
4. I recommend keeping a PDF copy of EVERY document you send to the borrower.  Also save copies of the important letters issued by your servicer to the borrower.  This can protect you later if documentation questions arise in a legal case.  It also helps when you get a borrower on the phone and can refer to the exact documents you send them in the package.

- Regarding the AOM, I never send it to the borrower unless they ask.  It should simply be understood by the borrower that you are the owner of the loan as it has changed hands from the originator to XYZ company to you.  They will not generally understand what an AOM is, what it means or how to trace the chain of title.  If the subject comes up I will explain that we have purchased the 'account' with the right to collect the full balance due, our purchase has been recorded with the county and, they can check those records themselves.  If they want proof, then I will forward a link to the county database or send a copy of the recorded AOM.

Hope that helps.

Quote from Roman on July 19, 2024, 7:51 pm

Hi Nick,
thanks for the detailed answer.
In our technologically backward Russia, the postal service can become a third party by signing the inventory of documents being sent.
Of course, in this case, the postal employee does not delve into the essence of the documents themselves, but only looks at their headings. Such an inventory of the attachment is required in any court as proof that the other party to the case was not just sent something absurd, but precisely those documents that are listed in the inventory.
I went to FedEx today and asked if they had a similar service, in response, the FedEx employee expressed surprise at my request and said that he did not have the authority to even delve into the title of the document, so he would not sign anything and their fact of participation was confirmed only by the document issued me a check, nothing more.
It is a pity that in the US the important aspect of document sending is still in a grey area, as this potentially opens the door for the recipient of the documents to accuse the sender of, for example, losing important documents or deliberately removing them before sending them.

Quote from Bill on August 26, 2024, 11:43 am

All good points by Nick Hawryluk.  In addition to the Hello RESPA Letter, I send what I call my shock package.  I send this USPS 2 day priority mail.  I don't require a signature, it comes with a tracking number, so you can confirm that the package was delivered (this is proof).  This package gives them everything they need from the get go.  It shows them who the new lender is, the loan documents they signed, who the loan servicer is, what their options are, what to do if they believe it's fraudulent, how to get help, etc. My shock package consists of the following:

A welcome cover letter (on my company's letter head), that looks like this;

Welcome Package

Please review the enclosed Loan Documents & Information, in reference to your Mortgage.   XYZ, LLC just recently purchased the Mortgage on your property.  We are here to help you get this resolved. Please call, (888) XXX-XXXX, for assistance on explaining the Loan Documentation, and to discuss your Loan Modification Options. We look forward to hearing from you.

1. Lender TILA Letter - New Lender Welcome Letter

2. Mortgage & Note - Original Signed Mortgage & Note

3. Loan Account Statement - Total Payoff Figures & Reinstatement Figures

4. Option Letter - Options for Homeowners in Default

5. FTC Fact Sheet - Foreclosure Rules & Regulations

6. HUD Help Sheet - Foreclosure Help & Information

7. Homeowner's Testimonial - Previous Homeowner's Experiences

Note: In the event you have received a Chapter 7 BK discharge, please be advised that this Package solely relates to the lien of the Mortgage or Deed of Trust and this Package shall not in one way be construed as an attempt to collect a personal debt from you or in any way to bind you personally for the debt.

1.  My lender TILA letter. The Truth in Lending Act (TILA) letter states that my company now owns the loan, it has my company's information on it along with the loan servicer's information on it.
2. I include a copy of the original mortgage & note (along with the allonges)
3. Loan Account Statements, a payoff statement and a reinstatement. I get these from my loan servicer.  I use the one's from the loan servicer.
4. My Borrower Option Letter.  I will include that at the bottom of the page.
5. FTC Fact Sheet (4 pages). It's from the Federal Trade Commission.  It states borrower protection laws.   It shows the borrower what to do incase of fraud and unfair business practices.
6. HUD Help Sheet (9 pages).  There's a lot of different forms on the https://www.hud.gov/ website that helps borrowers understand mortgage help & terms.  The one that I include is the "Homeowner's Guide to Success", it helps borrowers understand what to do if they can't pay their mortgage.
7.  Homeowner's Testimonial sheet.  It's just a 1 pager that I created with five different borrower testimonials on it stating how my company helped them resolve their delinquent mortgage.

My company's borrower option letter looks like this:

XYZ, LLC is a private mortgage management company specializing in defaulted residential mortgages across the United States.

Call us today (888) XXX-XXXX for free assistance, XYZ, LLC is dedicated to working closely with homeowners to:

• Understand individual and personal situations.
• Respectfully explore creative ways to resolve the situation.

Loan Payment Options

Discounted Loan Payoff - Negotiate a price to PAYOFF the loan at a DISCOUNT.

Loan Reinstatement - Reinstate the loan and resume payments.

Loan Modification - Work with our Asset Specialist to modify the terms of the loan and LOWER the monthly payment.

House Options (Fresh Start Program)

Deed in Lieu of Foreclosure - Give the property to the lender instead of being foreclosed upon. While less damaging than a foreclosure, this may impact the borrower’s credit score.

Sell the Home - If the property is worth at least enough to pay off the mortgage debt, the homeowner may sell the home through a conventional home sale. This protects homeowner’s credit score.   If the property is not worth enough to pay off the entire mortgage debt. A short sale can be negotiated. This may affect the borrower's credit score.

Your Asset Specialist

If you are unsure which option is right for you, please do not hesitate to call us (888) XXX-XXXX.

Note: In the event you have received a Chapter 7 BK discharge, please be advised that this Letter solely relates to the lien of the Mortgage or Deed of Trust and this Letter shall not in one way be construed as an attempt to collect a personal debt from you or in any way to bind you personally for the debt.

 

I hope this helps.

Quote from Roman on September 1, 2024, 3:31 pm

Bill, thank you very much for your answer.
I appreciate your response, but it seems there was a misunderstanding. I was asking about something else.
I'm familiar with the contents of the Welcome package as I have completed the training.

Quote from Bill on September 3, 2024, 3:43 pm

You can mail a copy of the Assignment, once it's recorded, with the Borrowers Option Form.   Like I stated, I always send everything USPS 2 day priority mail.  It doesn't require a signature, but it comes with a tracking number, so you can confirm that the package was delivered (this is proof).

Quote from Roman on September 3, 2024, 4:03 pm

I'll try to explain my question in other words, because again I get an answer to a question that I didn't ask.
Bill, you write "it comes with a tracking number, so you can confirm that the package was delivered (this is proof)"
The thing is that if I put shredded newspaper in the envelope and send it with a tracking number via USPS priority mail, then this will also be proof that the package arrived. But how can you prove that you sent important documents, and not shredded paper? No way. So you send documents, and the borrower shows the shredded paper in court and says "Here, your honor, look at what this swindler sent me! And he tries to lie that he sent important documents. Please sue him and throw him in jail"

Quote from Bill on September 3, 2024, 4:12 pm

I do understand, there really isn't an absolute way.  You can have them sign for the USPS Package.  USPS will show that they signed for it, keep that information in your records.  Keep good records in your system and log everything.  If you are ever sued or put in front of a judge, you can show that.   It comes down to your word against theirs.  My mentor always told me to keep it clean and keep good records, so if you are ever in front of a judge you can show that.

Quote from Roman on September 3, 2024, 4:30 pm

The borrower will say, "Yes, the package arrived, I signed for its receipt. When I opened it, there was nothing else in it except a cut newspaper."
And what will you show the judge in that case? That the borrower only signed for the receipt of the package, but what was inside the package - how will you prove that to the judge? There is no way to prove it in USA.
After all, that's all I was asking about.
In Russia, this problem does not exist, since the postal employee is a third party and the list of documents is signed by the postal employee.