The Most Common Complaints Against Carrington Mortgage Services, LLC

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Congress passed the Coronavirus Aid, Relief, and Economic Security (CARES) Act in response to the COVID-19 crisis in 2020. This law was intended to help homeowners who were facing financial hardship during the pandemic. One of the biggest protections provided to homeowners in the law was that mortgage servicers had to provide forbearance plans of up to 180 days when a borrower asked.

After an investigation, the Consumer Financial Protection Bureau (CFPB) found that Carrington Mortgage Services, LLC misrepresented the requirements under the CARE Act. The company was dishonest with consumers and told certain borrowers forbearance did not have to be extended for 180 days. Further, the company even told some consumers that they were not entitled to forbearance at all when in fact, they were. Other violations the CFPB found are as follows:

• Illegally charged late fees: Carrington was deceptive with borrowers, stating that they owed late fees while their accounts were in forbearance. Carrington also lied to homeowners who were in forbearance by telling them that had been assessed or would be assessed, late fees when in fact, this should not have been true. Still, Carrington wrongfully charged late fees anyway.
• Incorrect information about pandemic protections: The company also told homeowners that they had to submit their monthly payments immediately, or face foreclosure for failing to do so. Homeowners were not required to make payments and they also could not face foreclosure. Carrington also told homeowners that they had to provide extensive explanations about why they needed a forbearance plan. Under the CARES Act, homeowners only had to tell their lender or servicer that they were experiencing financial hardship to qualify for a forbearance plan.
• Illegal credit reporting: Carrington reported some borrowers to the major credit bureaus, which resulted in those homeowners experiencing a reduced credit score at a time that was already very difficult. These homeowners were not delinquent on their mortgage payments but rather, simply in the allotted forbearance period.

While violations of the CARES Act are some of the most common complaints against Carrington Mortgage Services, Inc., they are not the only ones. If the company has threatened you with foreclosure or sent you a notice of default, there are defenses available even if you were not in forbearance under the Act.

Carrington Mortgage Services, Inc. May Not Own Your Loan

In Florida, foreclosures must follow a judicial process. This means that before Carrington Mortgage Services, or any other lender or servicer for that matter, can foreclose on a home, they must file a lawsuit against you. When filing the lawsuit, Carrington must also prove that they own your loan. This is especially hard for mortgage servicers to do. If they can prove that they own your home loan, they have standing and can proceed with the legal action. Standing refers to the fact that a person has something to win or lose during a lawsuit.

Many people assume that if a company such as Carrington has filed a lawsuit against them, they have standing to do so. Many homeowners are then shocked to learn that Carrington cannot prove that they own the loan. However, this is most often true when the plaintiff, or person filing the lawsuit, is a service such as Carrington and not the original company that issued the loan.

Large financial institutions often bundle mortgage loans together and sell them to smaller companies such as Carrington. Those smaller companies then sell them to other companies, sometimes five, six, or even more times. As these loans change hands so often, it is often difficult for companies to prove that they own the loan. If Carrington has threatened you with foreclosure, you must force the company to prove that they own your mortgage loan. If they cannot produce the note or the deed, they cannot move forward with the foreclosure case.

It is a sad but true fact that companies such as Carrington often forge these documents to move forward with foreclosure. It is also very difficult for homeowners to know whether these documents are valid or forged. A Carrington Mortgage Servicer foreclosure defense lawyer can examine these documents to determine if they are valid or forged.

Do Not Wait to Respond to Carrington Mortgage Services

If Carrington Mortgage Services, LLC, has notified you of a mortgage default or has threatened you with foreclosure, you must take action immediately. You only have 20 days to respond to the lawsuit, which includes identifying the defense you plan to use. If you do not respond to the lawsuit, the company can move forward and ask the judge for a default judgment. If you have not responded, they are likely to be successful.

A default judgment in your case means that Carrington will win their case automatically. You will not have the opportunity to defend yourself and will eventually lose your home. Always respond to any notice of a lawsuit filed against you so you know you have a fighting chance.

Contact Our Carrington Mortgage Services, LLC Foreclosure Defense Lawyer in Florida Today

If Carrington Mortgage Services, LLC has threatened you with foreclosure, do not hesitate to contact our Florida foreclosure defense lawyer. At Loan Lawyers, we have the necessary experience to go up against this servicing company and will put it to work to give you the best chance of keeping your home. Call our Fort Lauderdale foreclosure defense lawyer today at (954) 523-4357 or connect with us online to request a free review of your case and to learn more.