Consumer complaint received 2026-03-30 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: TX

Complaint narrative:
Loan was initiated by ( original property owner name ) XX/XX/XXXX, for ( address ) was assumed by ( buyers/loan assumers ) on XXXX XXXX. Taxes for the property for the XXXX tax year were paid in full XX/XX/XXXX, prior to the sale of the property/assumption of the loan. On XX/XX/XXXX, the US Department of Veterans Affairs awarded ( original property owner name ) 100 % Permanent and Total XXXX with an effective date of XX/XX/XXXX. This information was sent to XXXX County Appraisal District via the online portal on XX/XX/XXXX. The XXXX Veteran Exemption was posted on XXXX XXXX, removing any tax obligation for ( original property owner name ) indefinitely, beginning XX/XX/XXXX. XXXX XXXX issued a refund Check # XXXX for {$570.00} to the original payer ( Carrington Mortgage ) on XX/XX/XXXX ; XXXX days after closing on the sale of the home. On XX/XX/XXXX, the US Department of Veterans Affairs determined ( original property owner name ) 100 % Permanent and Total XXXX effective date to be XX/XX/XXXX. This information was sent to XXXX County Tax office by email, as we no longer had access to the online portal due to the sale of the home, requesting a refund of the taxes already paid for XX/XX/XXXX through XX/XX/XXXX ( unbeknownst to us XXXX had already been refunded in XXXX ). The exemption was processed XX/XX/XXXX, and resulted in another refund Check # XXXX for {$2400.00}, also sent to the original payer, Carrington Mortgage. After receiving refund checks for the XXXX tax bill and applying them to the original escrow account still associated with the property, Carrington Mortgage processed an analysis of the associated escrow account. As a result, ( buyers/loan assumers ) were issued an escrow refund check that included the XXXX property taxes of {$2900.00} that were paid by ( original property owner name ). Prior to the sale of the home, we were advised the Loan # would remain the same after the assumption but were assured the original escrow account would be closed and a new escrow account number issued to the Buyers. ( Original property owner name ) submitted Carrington Mortgage Services Intent of Unused Escrow Funds form completed prior to the sale of the home, indicating all escrow funds associated with the loan prior to the assumption should be refunded to ( original property owner name ). This includes taxes paid for XXXX and refunded after the XX/XX/XXXX loan assumption. According to Texas law Section 26.1125 Calculation of Taxes on XXXX XXXX of XXXX Percent or Totally XXXX Veteran, 'If the tax on the property has been paid, the tax collector for the taxing unit shall refund to the person who was the owner of the property on the date the tax was paid the amount by which the payment exceeded the tax due. '' Also, Section 11.439 Late Application for XXXX Veterans Exemption states, " If the tax and any related penalties and interest have been paid, the collector shall pay to the person who was the owner of the property on the date the tax was paid a refund of the tax imposed on the exempted portion of the property and the corresponding portion of any related penalties and interest paid. '' Based on the information above, XXXX percent XXXX United States Veteran ( original property owner name ) is due {$2900.00} from Carrington Mortgage. Thank you in advance for your prompt attention and response to this matter.

Company response to consumer: Closed with explanation