What to Do if You Find Errors in Your Loan Documents

Finding errors in your loan documents can be unsettling. You trusted those papers to reflect the terms of your mortgage and to protect your rights. The good news is that many errors can be corrected if you act carefully and document the problem. Below is a practical, step-by-step guide to help you identify, document, and resolve errors in your loan paperwork. Use this as a checklist, and contact SDAudit if you want professional help reviewing your documents.

Common Types of Errors to Watch For

Errors can be clerical, accounting, or legal in nature. Knowing the common categories will help you spot issues faster.

• Typographical mistakes – misspelled names, wrong Social Security numbers, or incorrect addresses.
• Loan terms – incorrect interest rate, loan amount, loan term, or payment schedule.
• Escrow and taxes – escrow shortages, misapplied tax or insurance payments, or incorrect escrow calculations.
• Fees and charges – duplicate fees, unexplained charges, or charges that were supposed to be waived at closing.
• Missing or invalid signatures – unsigned pages, or signatures that do not match other documents.
• Assignment and servicing errors – missing chain of assignment, wrong lender or servicer named, or improper recording.
• Payment history – payments not posted correctly, leading to false delinquencies or improper late fees.

Step 1: Document Everything

Start by creating a complete record of the problem. This is the foundation of any dispute.

What to collect

• Copies of the promissory note, deed of trust or mortgage, closing disclosure or HUD-1, and any amendments or modifications.
• Payment history and monthly statements from your servicer.
• Bank statements or canceled checks showing your payments.
• Any correspondence or emails with the lender or servicer.
• Recorded documents from the county recorder if relevant, such as assignments or releases.

How to document

• Make clear copies and highlight the exact lines that are incorrect.
• Create a dated summary that lists each error, why it is incorrect, and where it appears in the file.
• Keep originals safe and work from copies. Use digital scans and a secure cloud backup.
• Record phone calls only if it is legal where you live and you inform the other party. Otherwise, take detailed call notes including date, time, who you spoke to, and what was said.

Step 2: Contact Your Lender or Servicer

Most errors are resolved through the lender or servicer, but you need to be precise when you reach out.

How to contact them

• Start with your servicer’s customer service department. Use the contact information on your statement or the servicer website.
• Follow up by sending a written notice. Send it by certified mail with return receipt requested, and keep a copy.
• Include a clear description of each error, copies of supporting documents, and a request for specific remedies, such as correction of the account, refund of fees, or re-posting of payments.

Sample content to include in your letter

• Your full name, loan number, and contact information.
• A short list of the errors with page references and copies attached.
• A clear statement of what you want the lender to do and a deadline for response, for example 30 days.
• A statement that you will pursue additional remedies if the issue is not corrected, while remaining professional and factual.

Step 3: If the Lender Is Uncooperative, Hire a Professional

If the servicer refuses to correct obvious mistakes or if the situation is complex, consider hiring a professional. Options include a mortgage audit firm, a consumer protection lawyer, or a foreclosure defense attorney, depending on your situation.

What a mortgage audit firm does

• Reconstructs the loan history to confirm payments, fees, and principal balance.
• Examines chain of title and recorded assignments to verify who has legal standing.
• Identifies improper fees, double counts, or incorrect interest calculations.
• Prepares a report you can use in negotiations or legal proceedings.

When to call an attorney

• If the lender initiates foreclosure or you are already in foreclosure.
• If the error involves complex legal issues, such as forged documents or missing assignments.
• If you need help filing a formal complaint or pursuing court action.

Practical Examples

Example 1: The interest rate is wrong. The loan documents show a 4 percent rate but your statements show a 4.5 percent rate. You would gather the note and the closing disclosure, show the mismatch, and ask the servicer to correct your payment history and refund overcharged interest.

Example 2: Payments not posted. You have bank records showing on-time payments, but the servicer reports you as late. You would collect canceled checks or bank statements and ask for payments to be re-applied and late fees removed.

What to Expect After You Take Action

Responses vary. A cooperative servicer may correct the record and confirm in writing within a few weeks. More complicated issues can take months, especially if legal action is required. A mortgage audit report can strengthen your case and sometimes leads to a negotiated resolution such as a refund, loan modification, or removal of wrongful foreclosure proceedings.

Protecting Yourself Going Forward

• Always keep copies of closing documents and any loan modifications.
• Review monthly statements and escrow notices closely.
• Set up account alerts and maintain a separate payment log.
• Contact SDAudit if you suspect errors rather than waiting for small problems to grow.

Finding errors in your loan documents is the first step. Knowing what to do next is where SDAudit comes in. We help San Diego borrowers understand their rights, document their findings, and pursue corrections. Learn more about our loan audit services or get in touch for a free consultation.

Want Help Reviewing Your Documents?

If you are in San Diego and you find mistakes in your loan paperwork, do not wait. Contact SDAudit for a free consultation and let our experienced team review your documents, develop a plan, and represent your interests. Visit our mortgage audit guide for more information or order a professional audit today. We will walk you through each step so you can get errors corrected and protect your home and financial security.