Homeowners in Harris County face foreclosure despite timely payment of mortgages
In Harris County, Texas, some homeowners participating in the Housing Choice Voucher program are facing foreclosure threats due to administrative errors by new mortgage servicers. The issue arose after the transfer of servicing rights about 18 months ago, during which payment records were not correctly updated or credited, causing confusion and stress for homeowners trying to keep up with their mortgage obligations.
One of the affected homeowners, Marigail Cooper, has received default notices despite her records showing her and the Housing Authority's payments to Mr. Cooper Mortgage. Another homeowner, Neisha Black, had to file complaints to get Mr. Cooper Mortgage to admit they misapplied a payment from the Housing Authority to her escrow account.
To resolve these issues, homeowners are advised to keep meticulous records of all payments made both personally and via the Housing Choice Voucher program, notify the Harris County Housing Authority and the mortgage servicer in writing about any missing or improperly recorded payments, seek legal assistance, contact the Texas Homeowner Assistance Fund, and engage with local housing counseling agencies or HUD-approved organizations.
The Harris County Housing Authority has been working diligently to resolve the issues with Mr. Cooper Mortgage and has reached out to their executive leadership for a meeting, but has not received a response. Homeowners can also file complaints with the Texas Department of Savings and Mortgage Lending and the Consumer Financial Protection Bureau when mortgage payments are not recorded.
Nationstar Mortgage, doing business as Mr. Cooper Mortgage, has faced past lawsuits for violating servicing laws and failing to honor loan modifications. In 2022, the company agreed to pay nearly $6 million to settle allegations that it violated servicing laws that led to some borrowers losing their homes. In 2020, Nationstar Mortgage agreed to pay $91 million to settle claims that it failed to honor loan modifications.
The investigation is ongoing, and the Texas Department of Savings and Mortgage Lending has not responded to requests for information on how it is responding to the complaints. If enough people complain about one mortgage company doing the same thing, the Consumer Financial Protection Bureau may contact the Department of Justice to investigate.
Homeowners are encouraged to take proactive steps to protect their homes and resolve foreclosure threats. By staying informed, maintaining thorough records, and seeking available assistance, homeowners can work towards resolving these administrative errors and ensuring their continued homeownership.
- Despite living in Harris County, Texas, homeowners participating in the Housing Choice Voucher program are encountering foreclosure threats due to administrative errors by new mortgage servicers like Nationstar Mortgage, doing business as Mr. Cooper Mortgage.
- Homeowners should maintain detailed records of all payments, both personal and via the Housing Choice Voucher program, and immediately notify the Harris County Housing Authority and the mortgage servicer in writing if any payments are missing or improperly recorded.
- If mortgage payments are not accurately recorded, homeowners may file complaints with the Texas Department of Savings and Mortgage Lending and the Consumer Financial Protection Bureau for investigation.
- It is essential for homeowners to stay informed, seek legal assistance if necessary, engage with local housing counseling agencies or HUD-approved organizations, and consider applying for assistance from the Texas Homeowner Assistance Fund to protect their homes and resolve potential foreclosure threats.
