Consumer complaint received 2024-07-02 00:00:00
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — Trying to communicate with the company to fix an issue related to modification, forbearance, short sale, deed-in-lieu, bankruptcy, or foreclosure
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: CA

Complaint narrative:
Background Information : I am a first-time homebuyer, and my loan was secured by FHA which has very strict guidelines. There was no occasion where I was involved in the selection, option, procurement, or correspondence with/of any insurance company at any time but was only told that my insurance needs were addressed and paid through my escrow account automatically. It is also worth noting that I had no access to my mailbox for the first 40-45 days of the purchase of my home. On XX/XX/XXXX, I received my first e-mail regarding insurance before the close of escrow ( which was XX/XX/XXXX ). I received several notices from XXXX specialty regarding unpaid premiums. The first being in the form of an insurance binder ( Marked Exhibit XXXX  ) which states The policy is subject to premiums forms and rules in effect for each policy. Should the policy be terminated, the company will give the additional interest identified below 10 days written notice and will send notification of any changes to the policy that would affect that interest in the accordance with the policy provisions or as required by law. The company to be notified ( listed below ) was XXXX XXXX  XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX. I called XXXX XXXX XXXX XXXX XXXX with this notice information, and he assured me that everything was fine. XX/XX/XXXX, I received another notice from XXXX specialty regarding an unpaid premium notice ( Exhibit XXXX  ). I then contacted XXXX again and he informed me once again there's nothing for me to worry about all of this stuff is handled through escrow and I would need not to be concerned about the automated emails. On XX/XX/XXXX, I reviewed my closing docs, and my Initial Escrow Account Disclosure statement clearly has this insurance was a part of my escrow account under Hazard Insurance ( Exhibit XXXX ) so I confident everything was fine. So, when a XX/XX/XXXX email was sent regarding pending cancellation ( Exhibit XXXX   ), I assumed it was nothing. XXXX days later, XX/XX/XXXX, I received another cancellation e-mail that was issued to my escrow company that there was an outstanding balance of {$420.00} ( Exhibit XXXX ). According to Exhibit XXXX  ( dated XX/XX/XXXX ) that same dollar amount of {$420.00} appeared on the statement as paid, therefore again, I assumed this is the norm and that I should probably ignore these emails. XX/XX/XXXX, I found out that my mortgage had been sold twice by XXXX XXXX  XXXXXXXX XXXX XXXX XXXX XXXXXXXX and that XXXX  just sold it to Carrington Mortgage Services, effective XX/XX/XXXX with no one verifying any Insurance placement to protect the homeowner or the asset ( see Exhibit XXXX  ) XX/XX/XXXX, I receive an e-mail from Carrington Mortgage stating that they wanted to inform me that my loan is under review with underwriting for loss mitigation assistance. ( Exhibit G ). How is it that this underwriting process didnt discover that the home was UNINSURED? XX/XX/XXXXXXXX XXXX XXXXXXXX XXXX, I called Carrington Mortgage Services to find out what coverages were in effect and what coverages were not due to the fact that I received a letter from the warranty company stating that it was about to expire. When I asked about the homeowners insurance, I was told that the policy was in effect and in good standing and that the disbursement from escrow was going to pay it again as it was about to renew XX/XX/XXXX, according to Carrington Mortgage Services. ( Exhibit XXXX  [ recorded call XXXX into the call ] when this information was given ). 

Passing the XXXX : On XX/XX/XXXX that approximately XXXX XXXX  I walked down to the kitchen to get the kids some breakfast before school. As I walked over to the sink, I stepped in a warm puddle of water that began to seep through my socks. I assumed that somebody had spilled some warm water or maybe coffee on the floor but as I looked down everywhere I stepped water was coming up through the tile. I called a plumber which was XXXX XXXX  ( Exhibit XXXX ) and they came out to find out what the issue was. I was told that there was a pinhole burst in the kitchen behind the sick drywall and hot water pipe. When I called my mortgage company to file a claim, that's when my nightmare began. After three ( 3 ) days of being sent in circles from the mortgage company back to the insurance company the conclusion was made, on XX/XX/XXXX ( see Exhibit XXXX  ) that I didn't have an active policy and was given the cancellation date of XX/XX/XXXX. Almost a year prior, which, according to FHA regulation, is IMPOSSIBLE. XX/XX/XXXX, I reached out to ML Mortgage again regarding this issue and was given the attached Evidence of Insurance binder and supporting docs ( Exhibit XXXX  ). XX/XX/XXXX, I spoke with a XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXXXXXX, CA XXXX, which was the person PRODUCER of the insurance policy on my behalf, ( see Exhibit XXXX  ) he stated that he never received any notices or correspondence from XXXX XXXX and actually alluded to it being my fault that the policy, which I had no knowledge of, cancelled. According to my loan documents, XXXX XXXX in a REQUIREMENT to have this/my mortgage ( Exhibit XXXX  ) XX/XX/XXXX, I was forced/pressured to either accept a Force Placed insurance policy purchased by Carrington Mortgage Services OR stay without a kitchen and running water. I was basically bullied into an expensive, overpriced policy in order to restore order and peace to my home. 

XX/XX/XXXX, the bullying continues, and Im sent the documents for the expensive policy because of the negligence on their part. ( Exhibit XXXX  ) XX/XX/XXXX, I was issued a policy to mostly cover the home, and it is made VERY CLEAR that I/my family are NOT an insured or additional insured under this policy. In this, they will not help us with temporary facilities and are forcing my family and I to live in a dangerous and toxic construction zone ( Exhibit XXXX  ). The remainder of the funds will be released upon inspection by Carrington staff @ 70 % or more. 
XX/XX/XXXX, I finally received a partial payment to get the construction/repairs to the kitchen. All of this time we are washing dishes in the bathtub and cooking in the garage on hot plates and crock pots. ( see Exhibit XXXX  ) XX/XX/XXXX, once XXXX % complete, the contactor said they couldnt finish until receiving the rest of their payment. I put in a request for an inspector to come out. When I went to check the status of my inspection, I found out that without notice or explanation, my request for inspection was CANCELLED, forcing us to live in this environment longer than necessary I have since re-requested an inspection on XX/XX/XXXX, the date I noticed my original request was cancelled. ( Exhibit XXXX  ) XX/XX/XXXX, after not receiving any correspondence from Carrington, I decided to email a complaint to Carringtons escalation department ( see Exhibit XXXX ) The Current State : As of the date of this affidavit ( XX/XX/XXXX ), we are still living the horror story of being forced to live under undesirable circumstances. I was told I can get my own insurance, but because my policy was cancelled due to the negligent action ( XXXX ) of others, I am unable to get an affordable Home Insurance Policy due to the Force Placed status that was placed on me with is thousands of dollars more expensive and has caused my mortgage to get even more expensive than necessary. My family has been living under massive stress since XXXX of last year and my children and I are forced to inhale toxic dust and living in a construction zone and eating expensive fast food and cooking on hot plates. Our Forced Placed policy does not protect us. We are constantly in fear that something may go wrong in the house and we wont be protected ( which defeats the purpose of insurance ), as well as the continuous FINANCIAL BURDEN thats being placed on my whole family because of the high cost of this ( Carringtons insurance ) policy, not MY policy. Beyond the exhibits attached to this affidavit, I have XXXX video diaries that document the state of decline that we have been forced to live in due to the dereliction of duties of others. I declare under the penalty of perjury that the aforementioned is true and accurate to the best of my knowledge, executed in the state of California , county of XXXX, this XX/XX/XXXXXXXX XXXX

Company response to consumer: Closed with explanation