Consumer complaint received 2023-01-25
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: FL
Product: Mortgage
Sub-product: FHA mortgage
Issue: Struggling to pay mortgage

Complaint:
FORBEARANCE FRAUD Carrington Mortgage Services ( Carrington ). appears to be engaged in a fraudulent scheme to push homeowners into foreclosure by extending 3 months forbearance and immediately demanding the 3 months payments all at once. Carrington has not acted in good faith, been transparent or fair to customers who were never late on a payment and are now experiencing trauma from a life changing natural disaster. We have been displaced from our uninhabitable home and are living in a rented camper in our driveway while working with certified contractors to re-build our only residence. The following timeline outlines events that have occurred leading to Carrington notifying us of their Intent to Foreclose on our mortgage : XX/XX/XXXX - XXXX was exposed to and contracted XXXX on XX/XX/XXXX. He was sick and couldnt work XX/XX/XXXX - XXXX caught XXXX from her husband shortly thereafter XX/XX/XXXX - XXXX and XXXX were still recovering from XXXX when the natural disaster, Hurricane Ian, caused catastrophic damage to our only residence, necessitating additional emergency time out of work until XX/XX/XXXX. We have applied but received no compensation for this lost work. 

XX/XX/XXXX - In good faith and transparency, we have both communicated with Carrington by phone and email requesting help because we were not able afford to pay our mortgage payment since we both became sick with XXXX. Carrington immediately refused to give us 180 day forbearance upon request. They said the maximum forbearance they could give was 3 months and that we could apply for an extension only after the 3 month forbearance expired. They also told us that they would call us before the expiration of the 3 months but they never did. 

XX/XX/XXXX - We called numerous times during XX/XX/XXXX and Carrington refused to extend the forbearance advising us to call for an extension only after the expiration date has occurred. During at least two of these calls they told us that they would call us the week before our forbearance was to expire. They never did. In good faith, we have tried to work with Carrington to save our home and keep our good credit. 

XX/XX/XXXX XXXX called Carrngton who then refused to extend our mortgage forbearance stating that the program was no longer available. 

XX/XX/XXXX- XXXX # XXXX advised XXXX that the program was over and that Carrington couldnt grant an extension. When I broke down from the stress and mental exhaustion, she told me that Carrington would accept one payment before XX/XX/XXXX and that would stop foreclosure proceedings on our home. 

XX/XX/XXXX - Acting in good faith again and at the direction of Carrington, we made a mortgage payment in the amount of {$2400.00} - XXXX XXXX XXXX XXXX XXXX XXXX - Bank records show that XXXX received our payment of {$2400.00} XX/XX/XXXX - Without prior notification to us, Carrington refunded the payment made on XX/XX/XXXX of {$2400.00}. This was very upsetting to find that they refused to accept our payment. 

XXXX - XXXX immediately called Carrington who denied receiving the payment made on XX/XX/XXXX for {$2400.00}. Further Carrington advised that if 3 months were not paid immediately, interest will accrue, the 3 months of forbearance would result in derrogatory credit reports and foreclosure proceedings would be initiated. XXXX is a long haul heavy load truck driver and his mental and physical performance is critical for safety reasons. XXXX called me, in absolute fear and distress that he was going to lose the first home hes ever owned. I began having severe XXXX pain as a result of the news and wasnt able to function for 2 days. 

XX/XX/XXXX - A Notice of Intent to Foreclose dated XX/XX/XXXX was received by USPS from Carrington XX/XX/XXXX - A certified copy of Notice Of Intent to Foreclose dated XX/XX/XXXX was received by hand delivery OBSTRUCTION Further, as part of their scheme to steal the homes of consumers in distress from XXXX and hurricane Ian, Carrington is obstructing our ability to obtain a modification or other mortgage assistance relief by repeatedly providing false and misleading information and losing documents that were submitted and in their possession. 

XX/XX/XXXX - After learning that Carrington refused to extend our forbearance, XXXX # XXXX told me to go to their website and complete a Mortgage Assistance Package as soon as possible XX/XX/XXXX ( XXXX ) - I sent a completed Mortgage Assistance Package with all requested documentation to XXXX as instructed. 

XX/XX/XXXX - I receive a letter ( attached ) from Carrington Mortgage stating that they had not received all of the required documentation and my application was incomplete. 

XX/XX/XXXX - At XXXX XXXX, I called and spoke to XXXX # XXXX about the missing documents for our mortgage assistance. After review of our record, XXXX stated that one of the bank statements that we sent was missed by Carrington so XXXX sent both statements to her supervisor for follow up. She also stated that they are saying that my XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  for my upcoming XXXX payments doesnt match my XXXX XXXX XXXX ( before the XXXX  ). She said that they are requiring further documentation of my pension. 

XXXX advised me to attach my old XXXX award letter showing BOTH the XXXX award and the lower XXXX award of {$1300.00}. Regarding documentation of my State of Florida XXXX XXXX, my check has been {$1000.00} since XX/XX/XXXX and my award letter matched all my bank statements so this was a ridiculous request. For this reason, on XXXX advice, I included both our XXXX bank statement as well as all activity on our account up to date ( XX/XX/XXXX ). 

XX/XX/XXXX - At XXXXXXXX XXXX, on XXXX recommendation, I sent the additional documentation via email XX/XX/XXXX - I received another letter from Carrington dated XX/XX/XXXX once again stating that they never receive the required documentation. 

XX/XX/XXXX - ( XXXXXXXX XXXX  ). I called Carrington asking for a supervisor and got a very nasty and condescending supervisor named XXXX # XXXX. Numerous misrepresentations were made by XXXX and it appeared that her job was to impede my ability to obtain help rather than facilitate it. From the start, she was not transparent or forthcoming about anything. 

XXXX told me that they still needed documents for my Mortgage Assistance Application. XXXX went through the bank statement and advised me that I did not send 2 months of bank statements. She said that I only sent one statement and the XXXX bank activity printout. She refused to listen to me that I had actually sent 3 bank statements ( XXXX, XXXX & XXXX ) and a printout of all subsequent activity. I told her that I did this on the advise of another employee. Finally, after an hour of trying to get her to understand and without admitting that she found the 3 statements, XXXX said that she would send an email to the department explaining the situation. 

XX/XX/XXXX - I received yet another letter dated XX/XX/XXXX from Carrington, stating that they have received additional documents provided by me but our loss mitigation application remains INCOMPLETE.

When we applied for Mortgage Assistance, we were told it would take 30 days. I was also told that I had 30 days to submit all documents or my application would become null and void and Id have to reapply. The application was submitted on XX/XX/XXXX. It is now XX/XX/XXXX and due to Carringtons negligent handling of documents and willful deception, our application will expire in 5 days, while foreclosure proceeds.

FURTHER OBSTRUCTION Lastly, when we originally called Carrington on XX/XX/XXXX and advised that our home had been damaged, we were never told to open a claim with XXXX XXXX XXXX ( XXXX ). On subsequent calls, we were never told to open a claim to get our insurance money. It was only when I received 2 small checks from our insurance company that I learned that I had to first open a claim with XXXX who is handling loss mitigation for Carrington, thereby further delaying the dispersement of my funds and the repair of my home. 

XX/XX/XXXX I spoke to XXXX # XXXX and asked for instructions to remit insurance checks for damages. He advised that they could not process my insurance checks until their XXXX package was received. 

XX/XX/XXXX - I received a Carrington Claim Packet via email. 

XX/XX/XXXX ( XXXXXXXX XXXX XXXX I sent ONE email with all 3 signed and completed documents in the claim package 1 ) 3rd Party Authorization for our PA ( Total Claim Source ) 2 ) Borrowers Declaration of Intent to Repair 3 ) Insurers Estimate of Damages XX/XX/XXXX - XXXX sent insurance checks along with 3 additional printed copies of the required documents via overnight USPS XX/XX/XXXX- I received a letter dated XX/XX/XXXX from Carrington Mortgage stating that they still required our Insurers Estimate of Damages which was emailed over 2 weeks before and physically sent via overnight mail. 

XX/XX/XXXX XXXX XXXX XXXX, I called Carrington mortgage and spoke to XXXX # XXXX, supervisor with Carrington Mortgage Services. I asked to speak to XXXX in reference to a letter I received. XXXX said that I was talking to XXXX. I advised her that I was told by XXXX that they were a contractor. She interrupted me saying that they were the same company. I explained that all 3 documents were attached to an email and that I didnt understand how they got 2 attachments but not the 3rd. XXXX interrupted me and spoke over me numerous times. I allowed her to explain her scripted answer over and over which was not responsive to my question. When I would try to ask a question, she consistently cut me off mid-sentence. XXXX was unprofessional and a rude and condescending bully which only heightened my anxiety and fear of losing my home. Both of us have gotten to the point of not being able to sleep at night as a result of Carringtons obstructive and antagonistic business practices. This lack of sleep could be life threatening for someone transporting XXXX pounds across the country. XXXX consistently evaded answering me when asked about numerous errors by Carrington. Finally an hour later, she told me that she had to transfer me to XXXX because they were a contractor for Carrington. She knew that XXXX was a contractor and deliberately tried to deceive me. 

XX/XX/XXXX - At XXXX, I finally reached XXXX XXXX # XXXX who advised me that the database shows that they did receive the insurers estimate twice and that it was indeed on file. She also advised me to call for an inspection because the balance of my insurance checks would be held until they inspected the home. I requested an inspection and was told that Id hear from an inspector within a couple days. 

XX/XX/XXXX XXXX XXXX XXXX I received a phone call from XXXX, an independent Roof Inspector. XXXX told me that his earliest appointment for an inspection to release my funds was XX/XX/XXXX ( nearly 4 months ). He said that some lenders will do a virtual inspection. 

XX/XX/XXXX - XXXXXXXX XXXX I called XXXX and was so thankful to get one of the few people that were helpful. - XXXX # XXXX. I told her that that they would not be able to inspect the roof until XX/XX/XXXX and that I just couldnt wait that long as I am displaced from my home paying close to {$1500.00} per month in storage and rent out of own pockets. Our insurance still has not paid a dime toward expenses and we advised Carrington of our additional expenses which are a direct result of this natural disaster. I also told her that Carrington is rapidly trying to foreclose on my home and I might not be here in 4 months. XXXX requested a virtual Inspection on my behalf. 

XX/XX/XXXX - XXXXXXXX XXXX I received a call from XXXX ( my XXXX file owner ). She told me that she will set up a virtual inspection and I will receive a call today or tomorrow with the information of where to send the photos. 

XX/XX/XXXX - At XXXX XXXX, I received a text message from XXXX XXXX XXXX advising me that she will be calling me to schedule an inspection. So Im back in the Carrington delay zone waiting to see how long it will take for her to come and inspect. 

SUMMARY In summary, based on representations made by Carrington, we believed that we could use the little money that we had to pay for storage of our belongings and rent a place to live so that we could begin to rebuild our lives. We never imagined, nor were we told, that they would immediately demand the back payments, ruin our credit and foreclose on our home. Carrington told us that : 1. The maximum forbearance they could give us was 3 months and that we could request an additional 3 month extension only after the expiration of the 3 months.

2. Mortgage assistance or modification would be available after the forbearance expiration.

3. There would be no late fees applied to the forbearance months 4. Payments missed during forbearance would not be reported as late to the credit reporting agencies.

Carrington has a reputation in the debtors community for using criminal means to harm the borrower through deceptive acts connected to mortgage forbearance resulting from federal disasters. On XXXX XXXX, The Consumer Financial Protection Bureau ( CFPB ) received a consent order finding that Carrington Mortgage unlawfully withheld legally mandated pandemic protections, wrongly imposed fees, and reported false information to credit reporting companies,. It further determined that homeowners were misled and denied key protections at a time when they were in most need of help.

As a result of the above consent order, Carrington Mortgage Services agreed to pay a {$5.00} XXXX penalty to the Consumer Financial Protection Bureau ( CFPB ) for improper practices related to the forbearance plans provided for homeowners during the Covid-19 pandemic. However, while settling that consent order, Carrington was continuing the exact illegal practices for which they were being fined. This establishes a pattern or practice of continuing violations and penalties should be assessed to compensate us for our mental anguish and emotional distress in addition to making us whole by repairing our credit and deducting all expenses related to the pursuant, illegal foreclosure.

NOTE : I have documents but am unable to load them to your system but would be happy to email or send USPS. Thank you.

Company response to consumer: Closed with explanation