Consumer complaint received 2026-02-18 00:00:00
Product: Mortgage — VA 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: TX

Complaint narrative:
I am submitting this complaint regarding mortgage servicing errors, loss mitigation mishandling, conflicting servicing transfer records, lack of written communication, and procedural irregularities during the servicing transition from XXXX to XXXX immediately preceding the foreclosure sale of my primary residence. On XX/XX/XXXX at approximately XXXX PM, I submitted a documented mortgage assistance and loan modification application through the servicers secure portal, explicitly stating it was intended to stop the foreclosure sale, and I confirmed receipt the same day, yet I was never provided any written notice that my mitigation was considered inactive and was later informed only through verbal communications that no active mitigation was on file as of early XXXX. I possess formal written servicing transfer notices showing conflicting effective transfer dates, with XXXX stating the transfer was effective XX/XX/XXXX and XXXX stating the transfer was effective XX/XX/XXXX, while the foreclosure sale occurred on XX/XX/XXXX directly within this documented transfer window. XXXX transfer documentation further acknowledges that loan records may require time to be established following transfer and references a XXXX post-transfer period during which account processing is stabilized, and the notice also states that nothing will change about my current loan terms with this transfer in service, indicating that administrative continuity of the loan file, borrower documentation, and mitigation records was expected during the transition ; however, the disappearance of my documented mitigation submission and the absence of any written mitigation determination during this same period raise serious concerns that my account records, mitigation documentation, and review history were not properly logged, transferred, established, or reflected in the loan system before foreclosure proceedings continued. Critical information regarding mitigation status, servicing transfer handling, and account review was communicated verbally rather than in writing, I was not provided a consistent single point of contact, and I was later informed that the loan was still being referred for review activity after the foreclosure sale despite the sale having already occurred, yet no written explanation of post-sale review, mitigation handling, or account status was ever issued by the servicer. Throughout the months leading up to the foreclosure timeline, I remained actively engaged in good faith efforts to resolve the loan, received frequent daily outreach from investors, foreclosure assistance entities, and mitigation-related contacts offering assistance or alternatives, and I possess written purchase offers exceeding approximately {$310000.00} and {$330000.00} compared to a foreclosure sale price of approximately {$260000.00}, demonstrating that viable mitigation, retention, or disposition alternatives existed that could have preserved both housing stability and substantial equity had my mitigation status and servicing transition been handled in a timely, accurate, and transparent manner. Given that my documented mitigation submission occurred immediately before the conflicting servicing transfer dates and during an acknowledged record-establishment and transition period, the foreclosure proceeding within days of the effective transfer raises significant concerns that my documentation was not properly reviewed or administratively stabilized before irreversible foreclosure action was taken, and therefore I respectfully request a full servicing transfer audit between XXXX and XXXX, all internal account notes and mitigation logs, a written explanation of how my XX/XX/XXXX mitigation submission was handled during the transfer and review period, documentation of any post-sale review activity, and consideration of rescinding or otherwise equitably reviewing the foreclosure outcome for errors, mitigation mishandling, communication failures, or procedural inconsistencies during the servicing transition and mitigation review process are confirmed.

Company response to consumer: Closed with explanation