Consumer complaint received 2015-09-10
Product: Mortgage — FHA mortgage
Issue: Loan servicing, payments, escrow account — 
Company: CARRINGTON MORTGAGE SERVICES, LLC (AL)

I am concerned that the practices employed by Carrington Mortgage Services ( XXXX, CA XXXX are intended to devastate homeowners. After my own experience and then reading complaints to the XXXX with regard to other homeowners who 's loans have been bought from XXXX XXXX XXXX, I am gravely concerned about Carrington 's practices. 

On XXXX XXXX, 2015, I received notice of registered mail from Carrington Mortgage Services as well as a mortgage statement. I called immediately and learned at that time that Carrington had bought my home mortgage loan from XXXX XXXX XXXX in XXXX 2015 and the mortgage was in foreclosure due to nonpayment. This was the first correspondence I had received from Carrington. 

My mortgage payment has been automatically drafted from my bank account for as long as I 've held my mortgage. I had never been late, not even on XXXX payment in all of the years since purchasing my home. When I checked with my bank the following morning ( Saturday, XXXX XXXX ), I learned that my mortgage payment had indeed, not been drafted from my account since Carrington bought the loan. However, the amount due was available in my bank account but when I tried to make that payment to bring my loan current ( according to the mortgage statement I was mailed, the bill was due by XXXX XXXX, 2015 ), Carrington customer service told me that by federal regulations, they could not accept the payment, that the mortgage was in Foreclosure and that I would need to request a reinstatement -- of which would include a reinstatement fee. I was told that the Reinstatement Notification would be sent within XXXX hours. I received the Reinstatement Notification 4 days later. 

My concerns : I was not contacted by registered mail prior to my home going into foreclosure, I am concerned if federal guidelines were in fact followed with regard to not accepting payment by due date listed on the mortgage statement I received on XXXX XXXX, I am concerned with the amount of the reinstatement fee ( 'corporate/expense advances ), I am concerned that the reinstatement fee is only a quote and that Carrington will add additional charges, I am concerned that the nonpayment of my mortgage was repeatedly reported to my credit -- all before registered correspondence was sent. 

Whether I had not received notice due to an error in Carrington 's part for a typo ( incorrect address ) or for some other unforeseen reason, the moment I learned of the problem, I tried to bring my loan current. As of yesterday morning, the 'Total Reinstatement Quote ' was sent through XXXX ; however, when I called to inquire on the account, I was told that it would take XXXX hours to reflect on my account in which case additional charges and notifications could accumulate ( even though Carrington has received the funds ). 

I am greatly concerned with Carrington Mortgage Services practices. I feel that Carrington should have contacted me through Registered mail long before my mortgage went into foreclosure. Especially considering the mailing address was different than the property address which should be the same. Had they insured that correspondence was reaching me, I would not have had to pay an additional {$1000.00} reinstatement " quote '' and my credit would not have been affected. In the least, I would like negative reporting to my credit to be erased. Additionally, from reading XXXX complaints, it looks as if the company has increased all mortgages bought from XXXX XXXX XXXX to cover 'deficits in escrow. Is it realistic that everyone 's escrow account was found to be deficient?