Carrington Mortgage Services nightmare

StressedinCA

LoanSafe Member
I was past due 2 months when covid started but just couldn't catch up. I am in California and have a non federally backed mortgage. The lender filed a notice of default and election to sell in February 2021 but then after multiple calls I was offered a 3 month forebearance that ended on May 31st.i kept logging into my account because it said I would be contacted 30 days before the forebearance ended and offered a repayment plan. That call never came so I started calling them back. They said I wasn't eligible for any covid relief and was told to submit a request for mortgage assistance. I immediately got my paperwork together and uploaded everything. After that it's been one thing after another with them asking me to resubmit documents.

I finally received a letter stating my application was received effective 6/15. I logged into my account and it said package was in underwriting as of 6/17. The letter stated it would take approximately 30 days to make a decision but all foreclosure actions were on suspended.

Late Friday night I received an email saying there was an mortgage assistance update on my account. I logged in but it still says in underwriting. I was left with a sick feeling.

On Saturday we started getting phone calls from real estate agents and they said there was a trustee sale date filed. Sure enough it's scheduled for 7/27 and the status now says active but I never received any notice and I don't see anything recorded on the county website.

What does all this mean? Was I denied for a repayment option and I just haven't received a notice?

Thankfully my income is back to normal so I know i can afford my mortgage. I'm sorry for the long rant but I can't find my way out of this and really need some advice.

Thanks.
 

CandleFengShui

LoanSafe Member
I am not a professional but I just did a HAMP mod with my mortgage lender. My partners dad is a bankruptcy lawyer and I think he would say, "if you did not get a mod or re-payment plan, that you should file for bankruptcy if you intend to keep your home". However I think you should contact your lender asap and see what the deal is.
 

StressedinCA

LoanSafe Member
I received a loan modification offer in the mail today despite being told in February that I wasn't eligible because I had already accepted one before? This one offers a 3 month trial period starting 8/1 but doesn't say anything about the terms after the trial.

After spending the weekend worrying about the active status and sale date listed on several websites I went online and came across information about dual tracking violations. Im not an expert but based on what I've read isn't that what Carrington is doing by listing my home as active and posting a sale date? They seem to have reported this information on 6/24 while my account was in underwriting?

I really don't want to lose my house or jeopardize my chances of getting an approved modification but I feel like many of these debt collection lenders are doing this.
 

CandleFengShui

LoanSafe Member
Maybe you should call them and verbally accept the offer. That is what I did with my mortgage lender and then I sent a signed letter that was required by a certain date. As long as you accept the trial offer they can't foreclose or sell your home assuming that you make the trial payments on time. As far as terms of the perm mod, they should be pretty much the same as the trial.
 

Survivor_IN

LoanSafe Member
Hi StressedinCA!

Your story gives me PTSD from 2010. o_O

It appears your servicer has an independent & pre-pandemic claim, and with this technicality, is not compelled to assist you (in spite of government modification programs, foreclosure and eviction moratoriums). I tend to agree with CandleFeng, try to document your acceptance of the "modification offer" which begins on 8/01 (first payment). As always, if you have the funds to pay but they are not being demanded (due to sale date) then place them in savings. Sale dates can be cancelled, post-poned or rescheduled. Also, certain mortgage contracts have "reinstatement" clauses where you pay past due/lump sums "as a right in contract" to stop the sale or foreclosure. In absence of that, yes, bankrupt and take the reprieve to negotiate a repayment plan (where lender allegedly has promised one but has not performed it).

Sorry this causes so much stress. I think that is the point. Dual tracking is definitely a fear tactic. The more stress they cause you, the more likely you will unilaterally accept an offer, any offer. It's a racket. Fingers crossed they do actually perform. Typically this involves capitalizing missed payments (adding to the balance), or in the event of short term default (1-3 mos) they may divide those payments over 3-12 mo's and make them "in addition" to your regularly scheduled payments.

Watch them like a hawk, scan documents as you get them, document or record phone calls. Follow-up these phone calls with letters. Use legal letters and requests. What your lender is doing is what others have called a "mock execution." If the sale is not cancelled by x-date or time, you will have to declare bankruptcy to prevent the sale.

All in all, it appears that your trial plan does not start until 8/1. In general, mailed notices take a minimum of 10 days. It is likely they will send a notice of the new payment (some give little notice) before your 3 trial starts. If they don't cooperate to modify, you have options. In general, those servicers "compelled to foreclose," will approve (or deny) a mod AFTER the sale and say ,"my bad so sad." You can prevent or stop this dirty trick with bankruptcy.

Good luck!
 

StressedinCA

LoanSafe Member
Yes this is definitely a stressful time. We called Carrington last Monday and the representative confirmed the trial payment plan and said yes first payment on 8/1. When I asked about the sale date she said oh sometimes this happens? When I told her isn't this considered dual tracking she immediately placed me on a 10 minute hold. When she returned she said it was a mistake and may have been issued before the request for assistance. I pushed the issue further by stating dates of my request and the date sale was initiated but she said don't worry.

Of course today I've received the county recorders notice of the scheduled sale date for 7/27/21 and the lender is closed. My husband is furious with me for getting us in this mess and I just don't know what to do.
 
Top