When it comes to mortgages and home equity loans, working with reputable lenders is crucial. Shady companies are likely to surprise you with all types of charges and abuses. A solid loan agreement, reviewed by an attorney, will usually help you sidestep these pitfalls.

Mortgage servicing abuses go something like this:

After completing the papers and getting your mortgage, you receive a letter from the lender stating that your monthly payments are going to be significantly higher than expected. It says that your installments include escrow for various taxes and insurance, despite the fact that you specifically arranged to make those payments independently, with the approval from the lender.

Some time later, you receive another letter from the lender saying that you are being charged for late fees, even though you know that your payments have been punctual.

Or, you might get a telephone message saying that you’ve failed to uphold the required property insurance, and the lender is purchasing costlier insurance at your expense.

Additional charges you don’t recognize, like “legal fees,” are regularly added to the amount you owe, increasing your monthly installments or your final payment upon completion of the principal.

The lender doesn’t supply you with an accurate or comprehensive account of these charges. When you ask for a payoff statement to refinance with a different lender, you receive a document that’s either inaccurate or incomplete. The lender’s deception makes it nearly impossible to find out how much you’ve paid and how much you still owe.