The events that create a “successor in interest” are usually not happy ones. A successor in interest could arise due to the death of a relative, a divorce, legal separation, etc. The mortgage servicing requirements for successors in interest were created, in part, to prevent financial institutions from making an already difficult situation even worse. The point is not to further burden these people with unnecessary documentation requests, refuse to communicate, etc. While you are not required to seek out successors in interest, once you become aware of it, you must comply with the requirements.
Jerod explains more in the video.
Video Highlights:
- A confirmed successor in interest should be treated just like the borrower meaning notifications and disclosures should be given out accordingly.
- There is no time limit in which someone must present themselves as a successor in interest.
- Prohibitions include asking for unnecessary legal documents multiple times, refusing to communicate, etc.
Published
2023/08/07
