Consumer complaint received 2025-06-24 00:00:00
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Payment process
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: KS

Complaint narrative:
Approximately 8 months ago, I fell behind on my mortgage. I called in to make XXXX payments. They denied any payment unless it was the full amount, which was XXXX payments. This was a constant, ongoing issue. I would call in to schedule payments and they would not allow anything other than a full payment. Eventually they recommended I apply for mortgage assistance. They stated that would stop foreclosure. I applied for it. In that process, they would not allow any payments. Now I am even further behind. The wrongfully denied my mortgage assistance stating the reason was I did not reside at the property. That is false. I was told to dispute it and provide utility bills. I did that. I then received a letter stating I had been granted a forbearance. Not what I had applied for but that is what they had approved. The forbearance was granted and set to end XX/XX/XXXX. On XX/XX/XXXX, I called Carrington and their employee gave me the amount due to be current. They set that up for ACH with my bank to be transferred on XX/XX/XXXX. The amount was {$17000.00}. That was processed and taken out of my account. XX/XX/year> I received an account reinstatement notification. It states I owe a total of {$23000.00} by XX/XX/year>. This amount includes {$150.00} for late charges, {$1300.00} in corporate/expense advances, {$30.00} paid unrecoverable, {$25.00} unapplied funds credit, plus {$21000.00} in mortgage payments. They took my {$17000.00} on XX/XX/year> that they told me would make me current and did not apply it and are now telling me they mailed a check back on XX/XX/year> for that. However, today I received a letter from them, dated XX/XX/year> and still have not received the check they supposedly sent back two days prior to this letter. Today I spent two hours on the phone asking for an explanation regarding them processing the ACH prior to the deadline of my forbearance expiring, yet not applying it to my loan and now requiring me to wait to receive my money back, while applying fraudulent penalties and fees, and giving me a deadline to send the money back to them that I haven't received back from them to begin with. They have crossed so many lines at this point. The entire process started with wrongful foreclosure when they immediately would not accept any payment in good faith. Then following that, they wrongfully denied my mortgage assistance. After they advised me to dispute that, they still proceeded with the foreclosure process, after telling me that would stop it. After I accepted the forbearance, they will continue with the foreclosure. Even after calling to get the amount to be current and setting up the ACH with them, that they successfully took, they are still trying to pursue penalties for foreclosure. They are not trying to charge unauthorized fees. Late fees when I tried to make multiple payments and continue to be denied to make a payment. I also abided by their terms of the forbearance and in order to try to collect additional, fraudulent fees, they are returning my payment with no explanation. They only explanation is that they want it to appear as if I didn't meet that deadline so they can proceed in the foreclosure process as well as apply additional penalties. They are also clearly mishandling payments. ONLY after calling XX/XX/year>, was I told they are mailing that payment back now instead of applying it and making my account current. In addition to that, now I must WAIT to get MY money back that I already sent them once, so I can set it up as a wire now with additional fees applied. 
Another form of mishandling is not letting me make a lesser payment amount when it initially became past due to get it caught back up before all of them even transpired. 
They have failed to follow loan modification agreements as well. They forbearance was approved by them. They provided the terms and expiration date of XX/XX/year>. I abided by those terms successfully. 
I am also being discriminated against. This is an FHA loan, section XXXX, XXXX XXXX XXXX. My loan did not originate with Carrington. It was sold to them. I am an XXXX  XXXX and I am confident I am being discriminated against because of that by Carrington. 
They also failed to provide loss mitigation options when they wrongfully denied my mortgage assistance claiming I did not live at the residence because I had updated my mailing address to by business address. I explained why I did that. And they confirmed I have every right to do that and to dispute it. All of these things have resulted in credit reporting errors as well as tremendous emotional distress. I have lost weight, my health has declined over this. I have lost work, resulting in a major financial impact. I have XXXX now. This has caused emotional tolls for my family as well as at my business. As it stands now, I am in limbo, waiting for a check for {$17000.00} that Carrington states they have mailed back to me. No tracking. And they have given me a deadline to pay {$23000.00} by XX/XX/year>. But they have {$17000.00} of my money with no way to track it down and no explanation of why it isn't applied. If I do not pay that amount by their deadline, my house will be foreclosed. This seems extremely fraudulent and like a set up to try to take my house. There are several grounds to sue Carrington at this point. 
Wrongful Foreclosure Charging Unauthorized Fees Mishandling of Payments Failure to Follow Loan Modification Agreements Discrimination Failure to Evaluate for Loss Mitigation Options Credit Reporting Errors Emotional Distress If we can not come up with a resolution in a timely manner, since they have put me under the XXXX  to wait for my money to send it back to them, I will proceed with suing Carrington.

Company response to consumer: Closed with explanation