Mtg. service co's error on credit report kills deal. - Posted by Rolfe K / Mpls.

Posted by Rob FL on March 31, 2000 at 13:21:13:

You could always file a lawsuit against the credit companies and your mortgage company for making you lose the deal, cancel the checks, slander your credit, etc.

Of course it is probably best just to move on. Don’t let setbacks get you down.

Mtg. service co’s error on credit report kills deal. - Posted by Rolfe K / Mpls.

Posted by Rolfe K / Mpls. on March 31, 2000 at 12:59:46:

I’m MAD as heck and I’m…I’m…uh, er, I’m writing this!

Two mortgages I have on REI’s were transferred to a new mortgage servicing company - Temple-Inland Mortgage Corporation. The company sent us information about the transfer, and said “send payments to this address”. Later in the month, we notice the checks have not been cashed, and we get a call from TI. “Hey”, says they, “we have not received your mtg. payment”! We told them we had sent two payments, which they had no record of.

TI told us to stop payment on the checks, and to send a replacement payment to a different address. We did so. A couple of days later, we received a letter from TI saying two of our mortgages are 60 days late on payments, the reason being the checks were declined due to the stop payment of two checks, and checks for the next payment had not been received. Of course, the very same company had told us to send payment to a different address, which we did. The letter also stated TI had submitted a report to all credit reportiong agencies. Thanks, morons.

At the same time, I was working on a great financing package. The lender pulled a credit report, which showed the nonpayment on two mortgages. I explained, lender agreed it was TI’s error, TI’ sent a letter. Doesn’t matter. We have to clean up the credit report. And our deal is dead until we do so. The credit reporting companies tell us to expect take 30 - 60 days to take care of the matter. The credit reporting companies provided the worst customer service I have ever encountered.

In this business, 30-60 days can be a liftime. The properties I was after have sold. That deal is gone.

I feel like a small fish. Rolfe

Re: Mtg. service co’s error on credit report kills deal. - Posted by Glenn-OH

Posted by Glenn-OH on March 31, 2000 at 19:41:13:

Talk to a lawyer about suing. You might even see if there is a chance for punitive damages.

Re: Mtg. service co’s error on credit report kills deal. - Posted by TomC (Md)

Posted by TomC (Md) on March 31, 2000 at 15:03:48:

I ran to almost the same problem in December. Put a house under contract, went to get the financing taken care of. I had pulled my credit 6 mos ago, it was spotless.

Mortgage guy calls me up and says I have bad credit. WHAT!!! Turns out one servicer had incorrectly reported me late within the past 30 days to Experian and Equifax. I got letters from the servicer faxed to me stating they were in error and called both agencies, pleading (really begging, telling them I would lose the house if this wasn’t fixed) my case. They were able to get the stuff off the report in 72 hours.

The deal went fine after that. Settlement ended up being delayed by 3 days. But it still upset me to no end, and my servicing company got an earful!!


Re: Mtg. service co’s error on credit report kills deal. - Posted by Ed Copp (OH)

Posted by Ed Copp (OH) on March 31, 2000 at 13:46:23:

Rolfe, If this happened to me I would file a lawsuit for all the money that I ever hoped to earn on the properties in question. Then I would insist that the credit reporting agency enter the entire text of the lawsuit in my credit report as an expanation…ED