Complaint Review: Carrington Mortgage Services

I am writing to urge that everyone take a cautious look into the practices of Carrington Mortgage Services prior to doing business with them. I bought my first home in October of 2005 using a VA loan. The loan was held by Bank of America for 10 worry-free years prior their sale of it to Carrington in April of 2015.

The only reason I discovered that my loan had been sold was when I attempted to view loan information of BofA's website and discovered that my account no longer existed. I quickly called and was informed of the sale and the rep provided me with a phone number. After setting up my account with Carrington, I continued making the same regular, semi-monthly payments through my bank's bill-pay but to my new mortgage servicer's account.

In September, I noticed that my credit score with two agencies dropped a few points. Logging into Carrington's website, I discovered that they had raised my escrow payment starting August the 1st by $130 per month. I never got this communication, which is listed as being mailed out in late May.

Fair enough, I immediately paid the missing $130 and called to speak with a Carrington representative. I was told over the phone that the payment of $130 brought my account to current and that I could sign and mail in forms to start autodraft from my bank account on a semi-monthly basis. However, they require a voided check, which I haven't used in over 6 years and have none. Teaching classes on a regular basis and not having checks, I resolved to continue making payments through my bank's bill pay service, increasing the payments by the new $130 amount.

During the second week of December, I was presented with Certified mail at my doorstep of their intent to foreclose on my home?!? They were asking me for 2 months of payment in their demand letter, to be received no later than 30 days from the date of the letter. I immediately began to research on their site and see that they are holding my payments "In Suspense". Furthermore, their website is over 7 days behind with regards to posted payments. My credit score, which was outstanding prior to Carrington's involvement, has dropped almost 130 points! I investigated refinancing my home to get away from them, but I plan to sell it in 2 months, so lessening my equity would be foolish. This has to be the most disreputable company out there. I now have to deal with a fair credit score when I go to purchase my new home instead of excellent, and have 2 late payments on my credit report. This will probably disqualify me for another VA loan. Stay away!