Consumer complaint received 2016-09-13
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: CA
Product: Mortgage
Sub-product: FHA mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
I am a XXXX. My work would be slow. When XXXX was servicing my loan, I would get behind but was always given the opportunity to bring everything current as I would never let it get more than 3 months delinquent. When the servicing transferred to Carrington Mortgage Servicing, I got behind by three months. In that third month, I sent in a payment. Approximately two weeks after sending the payment, I was getting ready to send a second payment when I received the first payment returned. I called to ask why and was told " you have to pay the entire amount because FHA rules state once you are three months behind you have to pay the total delinquent, it is n't Carrington rules, it 's FHA rules. '' I told them I was confused because that had never happened with XXXX and had not known that information, in response I was told " then XXXX was breaking FHA rules ''. I asked if there were any other options and I was told no. Because I did not have all of the money at that time, only two payments instead of three, things just got further behind. By the time I had the three months payment, I was four months behind and so on. 
I called again when I received the notice of default and asked if there was anything I could do to make some kind of arrangements and stop the foreclosure process as I was close to the amount needed to catch up on the delinquent amount, I was told I would be mailed information. I did not receive any additional help or information. I then decided my only option was to sell my house so I could hopefully avoid foreclosure on my own. 
I am now almost done with selling my house and called to ask if there was a way to stop incurring fees or stop the foreclosure process since I was close to being able to have the house sold. I was told no, the only way to stop the process is ask for a payoff and then pay it and that I would continue to receive penalties and attorney fees until then. 
In talking to a lender I am told that I should have been given a point of contact once I was sent the notice of default. To my knowledge, I have never received such a person. In the " foreclosure package '' I received, there is a document that that has a box checked that states that I was " personally contacted and options were discussed. '' by Carrington. This did not happen. I have been given no option other than, pay everything. Even as I called today and recorded my conversation, the representative again told me there is no option to stop the foreclosure process or incurring fees other than to request a reinstatement amount and then pay that with all penalties and fees and also a reinstatement fee or to ask for a total payoff amount and pay the loan off completely. Until I do that, nothing else can be done and attorney fees will continue to accrue. I do not feel that I have been helped in any way and had I been sent to a path of correction when I was only a few months behind and had two months of that delinquent balance, I would not be in the scared position that I am today.

Company response to consumer: Closed with explanation