Credit tanked due to missing payments when mortgage servicer changed

[bbober]

Not sure if there is much I can do here, but wanted to see if anyone had advice. So I have a few rental properties, and at some point one of the mortgages got sent to a new lender (Freedom Mortgage). Unfortunately, my address was not up to date at the original lender, so I never got any notification of this. Some 4 months later I noticed my credit score was completely tanked, and i found the new lender through the credit report and was able to call and figure out what happened. I paid off all the late payments ASAP, but obviously my credit has still taken a major hit.

I asked customer support if they would consider removing the late payment history since it was a misunderstanding, but they said they could not do that, and that it's my responsibility to maintain a correct address. Of course they are correct, and I should've noticed, but they also did have my phone number and email address and did not call or email me about any of this. It feels like a pretty low bar to only have to send a letter out for something that I've been happily autopaying for 5+ years with no issues.

I tried complaining using the CFPB and credit dispute portals, but all they did was attach a copy of the bill and claim they sent it out, and the disputes were closed. I realize I'm probably out of luck, but any ideas here? It's frustrating to have my credit tanked over a bill that I could easily afford.

[FireMedic1]

You can ask them to send you any copies of a letter sent saying they hold the mortgages now. Anything they had when it transferred sent to you. Even saved emails.

[GApeachy]

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@bbober wrote:

It feels like a pretty low bar to only have to send a letter out for something that I've been happily autopaying for 5+ years with no issues.

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Who cancelled autopay with the old servicer, who was responsible for cancelation?  By any chance did the old servicer receive pymt during this transitional period? If so, you could get the 60 day grace period removed from cr if pymt was received. That would be better than having 4 lates.

[ForwardLooking]

Sorry you are experiancing this.

We are kind of in a technology piviot.  Some lenders have embraced technology (email, text, etc...), yet others are still oldschool and use the traditional snail-mail method only.  Unfortinatly, notice sent via mail is still considered the most accepted form of delivery for financial and legal matters.  Go back to your original paperwork and it probably states how communication should occur and what obligations you have such as changes of address.

Were you making payments (perhaps with the old mortgage servicing company) towards those months during that 4 month period that you can prove?  If so, you may be able to give it some time, showing some history of good payments with the new servicer, and then ask for a goodwill deletion if there are no more hickups.

[bass_playr]

Hang on, help me understand.

Since the transfer, did the old servicer continue to take the autopay out of your account each month?  

If so, you may have a defense there, as you believed the mortgage was being paid in good faith.  

If not, they will say that you should have noticed when the money wasnt coming out of your bank account for those months.  

[bbober]

Thanks all for the replies. To answer some of the questions:

• The old servicer canceled the auto payments after 1 month during the transition period. They forwarded that one months payment to the new servicer.
• I did not realize the auto payments were stopped. Obviously my mistake and I should've kept better track of it.
• They did claim they sent a letter out notifying me of the transfer. It's just I never received it due to moving and not updating the address on file (everything was paperless and autopay)

Sounds like there's not a whole lot I can do here other than hope a goodwill letter works.

[CreditCuriosity]

Sorry to hear, but think you are stuck with this as if you didn't notice payments were not being withdrawn for 3 months I think that is an issue.  Obviously you stated 4 months, but one month was cashed and forwarded or something along those lines.  The other three months one would think they have a decent chunk of surplus in their payment account.  Always keep your address updated with any people you are indebted to as you obviously found this out the hard way.   Sorry this happened, but you aren't the first nor by any means the last this has happened to.  Your only hope is to good will the new lender and hopefully in time they might remove it as your appeals to various entities will go in vain as ultimately it was your issue.