Consumer complaint received 2015-09-18
Product: Mortgage — FHA mortgage
Issue: Settlement process and costs — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (NV)

Seller did not own my house at the time I signed closing documents for my FHA mortgage. 
I purchased a double wide manufactured home from a Trust XX/XX/XXXX which was initially financed by XXXX, transferred to XXXX, and them bought by XXXX for pennies on the dollar. It was understood that the house and the lot would be converted to real property and that this process could take some time. It ended up taking two years, during which time I paid both personal property taxes on the house and real-estate taxes on the lot. 
XX/XX/XXXX I discovered that theTrust was for the benefit of professional flippers who had traded the lot my house sits on for another lot they already owned. These flippers paid the owner of the lot {$2100.00} for a lien they had placed on the house for back rent. A title search conducted as part of a lawsuit for appraisal fraud I filed against XXXX with XXXX XXXX XXXX as successor in interest, my realtor and appraiser XX/XX/XXXX revealed that the flippers NEVER owned the house I purchased using an FHA insured loan. HUD regulations stipulate that a house can only be sold by the owner of record. While the trust was the owner of record for the lot, the owner of record for the house was actually XXXX XXXX, XXXX -- NOT the flippers, not the Trust nor the trustee who was named as the owner in all of my closing documents. Additionally, HUD found that the house did not qualify for the FHA loan as it does not meet HUD underwriting guidelines, as per the evidence I provided to them in a complaint I filed with them. Transfer of title of the house to me did not occur until two years after the signing of closing documents XX/XX/XXXX, and only after the State of Nevada and XXXX XXXX engaged in an investigation when the the State discovered that XXXX XXXX was holder of the title, and not the flipper who sold it to me. 
I have wrongfully paid between $ XXXX-XXXX to XXXX/XXXX XXXX on a non-existent contract as a result. 
I sent Carrington Mortgage Services, Carrington Foreclosure Services and XXXX XXXX XXXX a rescission letter demanding that all monies paid on the note to be returned to me based on the fact that the contract is void. I also requested that satisfaction of the note be recorded with the XXXX County Recorders Office and notification of payment in full sent to all of the credit reporting agencies. Carrington refused to honer my rescission based on the dismissal with prejudice of the lawsuit filed XX/XX/XXXX. My case was dismissed with prejudice because I had stated in my complaint that I did not know that I was entitled to a copy of the appraisal. XXXX XXXX XXXX was able to produce documentation with my signature stating that I did know I was entitled to the appraisal -- so my case was dismissed. 
However, the information regarding the fact the seller did not own the house was not know to me at the time I filed the suit and was never admitted as evidence as the information was provided to me after the suit was dismissed. The fact that my case was dismissed does not change the fact that the contract was not consummated and is null and void. 
Carrington now wishes to foreclose and sent me a notice of default after 5 1/2 years after my default and 4 years after I declared chapter XXXX BK that included my house. Allowing Carrington/XXXX to take my house is another fraudulent act that will result in unjust enrichment on their part and cause further damage to my now good credit.