Should I Sue My Mortgage Company?

[Ocala Mike]

I put in a complaint about them to the feds and, after pulling teeth, they sent me a letter acknowledging in writing that they made two separate serious errors in handling reporting of my loan performance to credit bureaus going back 5-6 years.

Without going into too much detail, both my wife's and my credit scores were negatively impacted by their errors. Although they claim they are "correcting" the matter, the damage is already done in that we were denied credit, had to pay higher interest rates for the credit we do have, had to pay higher auto insurance and home insurance premiums, and one of us got laid off for reasons other than job performance (suspicious).

The feds got them to correct the reporting, but claim I am on my own as far as recovering damages. Any ideas on how I should proceed?

[Greyfox]

Yes.
That happened to a friend of mine too.
He went to a bank to secure another mortgage and was accused of being late on his original mortgage 39 times.
He was never late on any payments.
The mortgage company admitted to a mistake and said it would take a couple of weeks to correct the error with the credit bureau.
I haven't heard whether or not that was ever corrected.
Not sure what you can do.

[HUSKER55]

GET a lawyer. sue all of them including the credit bureaus.

See what shakes, they owe you something.

also, you may want to consider checking your credit score more often

[ReplayRandall]

I put in a complaint about them to the feds and, after pulling teeth, they sent me a letter acknowledging in writing that they made two separate serious errors in handling reporting of my loan performance to credit bureaus going back 5-6 years.

Without going into too much detail, both my wife's and my credit scores were negatively impacted by their errors. Although they claim they are "correcting" the matter, the damage is already done in that we were denied credit, had to pay higher interest rates for the credit we do have, had to pay higher auto insurance and home insurance premiums, and one of us got laid off for reasons other than job performance (suspicious).

The feds got them to correct the reporting, but claim I am on my own as far as recovering damages. Any ideas on how I should proceed?


I would start with your State's Consumer Affairs Department. They handle Mortgage Violations. Your Lender is most likely not in your State but Consumer Affairs will direct you to the agency you need. Also, go to your local TV station and see if they'd like to do an investigative "piece" on your situation. Stations love controversies, which bring higher ratings and sometimes quick monetary compensation from the company negatively depicted. Good luck.....

[badcompany]

Sounds like you have a legit reason reason to take legal action.

Of course, the question is whether the time and effort is worth it.

[Greyfox]

Of course, the question is whether the time and effort is worth it.

and money.

Lawyers can drag these things out for years and years chewing away at any compensation you receive.

[Ocala Mike]

you may want to consider checking your credit score more often



Excellent point, amd I found out about the problem by doing just that, although probably not often enough. I noticed wild fluctuations in our credit scores, and listings of the mortgage account that made no sense. I now check with Credit Karma on both of us at least once a week.

I am expecting calls tomorrow morning from a couple of different lawyers, and am laying out my documents tonight. Obviously, I am hopeful that one of them will take the case on a contingency fee basis, as I do not have the resources to "hire" them. We'll see what develops.

[Dave Schwartz]

I would research if there is not already some lawyer working on a class action suit.

[Ocala Mike]

Dave, I should have mentioned that my mortgage company is Cenlar. After doing a little research on the net, it seems that Cenlar is to the mortgage industry what ISIS is to global harmony.

Hundreds of complaints about this company; couldn't find a class action suit, but I'm still looking.

What I don't understand is how Freddie Mac "holds" my note, but they let a company like this "service" it. Think I'll get to know my congressman over this crap yet (although he's not into federal regulation).

[TJDave]

See if there is any class action suit you can join. If they did it to you they did it to others.

IMO, suing a financial company and going it alone is slow death. They can out spend, out last , out anything. I'm involved in a class action suit against a wall street bank. Been going on for 7 years with no end in sight.

[johnhannibalsmith]

...

What I don't understand is how Freddie Mac "holds" my note, but they let a company like this "service" it. ...

I can't imagine...

[Ocala Mike]

I can't imagine...




And therin lies the rub, john. The entire mortgage and banking industry raping the populace while the feds cheer them on, presumably hoping for sloppy seconds.

[JustRalph]

Add up your total estimated "real extra costs" incurred then divide that by $400 an hour for a lawyer and decide if it's worth it. I'm involved in a lawsuit right now in a real estate deal. Sat with an attorney two weeks ago and this was the first thing we did.

Btw, don't be afraid to ask a lawyer for a discounted hourly rate. Sometimes they say yes

[Ocala Mike]

Understand, Ralph; would only be interested in pursuing this if a lawyer would take it on a contingency basis. I understand punitive damages over and above my actual damages (which admittedly are difficult to quantify) can be significant in some cases, especially where there has been a pattern shown by the company.

[HUSKER55]

Got an Idea, probably bad........ :D

My theory is your lawyer is not going to be able to get you enough money for you and cover his time.

Time to play poker. Go to the street, as they say.

Send them a letter asking for an out of court settlement for $100,000 (or whatever number you decide) and see what shakes.

Their response will give you a lot of current contact information, lawyers, and etc and then you will have a place to start harassing them.

Ask the lawyers if they want to defend themselves against disbarment.
Call your local FBI, State inspectors, and on down the list. Call them all. Make them guys so tired of answering phones, questions and etc they want to pay to get rid of you.

You can represent your self. I would think that would enable you to subpoena records and etc. Do you want them...no, but imagine how much trouble and expense they will have to go thru. The question is how much will they pay to stop you.

Assume these guys are crooks and they know it. They don't want their cover blown and all lawyers want to thin the herd so they can make more.

You can see where I am going with this.

Sorry....the bastard in me couldn't resist. If my health wasn't so bad I would help you to escape boredom. Keep that in mind. You got a lot going for you and sometimes you just have to "let go and move on". Just make sure it is YOUR decision. Yeh, it is a bitter pill but you can swallow it and move ahead on your terms.

Good luck!

[Ocala Mike]

Send them a letter asking for an out of court settlement for $100,000 (or whatever number you decide) and see what shakes.


You can represent your self.





Good luck!





Well, this could very well be the way I'll go, depending on what the lawyers tell me. I'm retired and have plenty of time to pursue this. I also have a track record of some success, having successfully represented my father-in-law's estate when we sued (and settled) with the US Department of Veterans Affairs for their complicity in his wrongful death back in 2002. Thanks for your offer of assistance.