Why Servicer Mistakes Are Fueling Foreclosures in Pasco County (2025 Update)
Foreclosures across the Tampa Bay region—especially in Pasco County—are rising faster than almost anywhere else in the country. While financial hardship certainly plays a role, a growing number of cases are happening because of something homeowners can’t control: mortgage servicer mistakes.
These aren’t small clerical issues. They’re errors that misapply payments, inflate balances, create false defaults, and place families at risk of losing their homes even when they’ve done everything right.
In this article, we break down the most common servicer mistakes, how they lead to wrongful foreclosure, and what legal tools can stop the damage before it becomes permanent.
Servicer Mistakes Are a Growing Factor in Pasco County Foreclosures
Local news outlets—including FOX13—have reported that the Tampa Bay area is now leading the nation in foreclosure activity. But what isn’t talked about enough is how frequently mortgage servicers create the very problems that push homeowners into default.
These servicer errors can trigger a cascade of issues:
- Incorrectly applied payments
- Mismanaged escrow accounts
- Premature default notices
- Failure to honor loss-mitigation agreements
- Dual tracking (reviewing assistance options while still pursuing foreclosure)
- Inaccurate payoff amounts or reinstatement quotes
Any one of these can place a homeowner in danger. When multiple errors stack together, foreclosure becomes almost unavoidable unless someone steps in to correct the record.
The Five Most Common Servicer Errors Putting Pasco Homeowners at Risk
1. Misapplied or “Missing” Payments
Many homeowners pay on time but still get marked delinquent because servicers apply payments to the wrong month, the wrong loan, or the wrong category (fees instead of principal). These mistakes lead to inaccurate balances and false default notices.
If you’ve received delinquency letters even though you’ve paid on time, you may be dealing with servicer error—not financial failure.
2. Escrow Mismanagement
Under Florida law and federal RESPA regulations, servicers must handle escrow accounts accurately. But mistakes happen constantly:
- Incorrect property tax payments
- Insurance premiums not paid on time
- Escrow shortages that never should have existed
- Forced-placed insurance that creates massive monthly increases
Servicer-caused escrow jumps can raise your mortgage by hundreds of dollars overnight, creating a false delinquency that spirals into foreclosure.
3. Ignoring or Losing Loss-Mitigation Paperwork
Modification paperwork goes “missing.” Uploaded documents aren’t reviewed. Calls aren’t logged. Homeowners waiting for review suddenly receive foreclosure notices anyway.
This is where “dual tracking” often appears—something that may violate federal mortgage servicing rules.
If this has happened to you, visit our Foreclosure Defense page to learn more.
4. Incorrect Default, Reinstatement, or Payoff Amounts
Servicers frequently include:
- Late fees that should not exist
- Attorney fees added before they’re allowed
- Charges tied to their own mistake
- Escrow shortages caused by servicer mismanagement
An incorrect reinstatement quote prevents homeowners from curing the default—and that’s exactly how wrongful foreclosure begins.
5. Communication Failures That Harm the Homeowner
Homeowners often report:
- Being transferred between departments with no answers
- Receiving conflicting instructions
- Having no record of previous discussions
- Never receiving critical letters the servicer claims were mailed
These failures aren’t just annoying—they can be legally significant. Poor communication that causes financial harm can qualify as a servicing violation.
Your Rights When a Mortgage Servicer Makes a Mistake
Federal law gives homeowners powerful tools to force servicers to correct errors. The most important is a RESPA Request for Information (RFI) or Notice of Error (NOE), which requires the servicer to respond with documentation and a full investigation.
When used correctly, these requests can:
- Expose accounting errors
- Prove dual tracking
- Correct inaccurate balances
- Stop an upcoming foreclosure sale
- Create legal grounds for damages
Our office routinely sends these requests and uses the results to fight back against unlawful foreclosure activity. You can learn more on our Consumer Protection page.
How Legal Action Can Stop a Wrongful Foreclosure
We start by forcing the servicer to produce proof.
Most servicers cannot fully document their own actions. When errors appear, we use them to challenge the foreclosure and negotiate time, corrections, and sometimes full case dismissal.
Strategic defenses may include:
- Challenging standing (does the servicer have the right to foreclose?)
- Attacking accounting records
- Identifying RESPA violations
- Showing improper fees or force-placed insurance
- Documenting dual tracking
- Exposing broken modification promises
Wrongful foreclosure cases often fall apart once the paperwork is challenged. Homeowners frequently recover lost time, lower payments, corrected balances, or the ability to keep their homes.
For a deeper breakdown of defenses, visit our Foreclosure Defense page.
How to Tell If You’re a Victim of Servicer Error
You may have a case if you’ve noticed:
- Payments marked late when you paid on time
- Sudden unexplained escrow increases
- Modification paperwork repeatedly “missing”
- Conflicting information from different departments
- Incorrect delinquency or payoff letters
- Foreclosure threats while you were still under review
If any of these sound familiar, it’s time to speak with an attorney. These issues don’t resolve themselves—and servicers rarely admit fault without pressure.
Need Help? Rebbecca Goodall Law, P.A. Can Step In.
No homeowner should lose their home because of someone else’s mistake. If you believe a servicer error put your home at risk, reach out for a free consultation.
We help homeowners across Pasco County—including Elfers, New Port Richey, Holiday, Tarpon Springs, Jasmine Estates, and Beacon Square—correct servicer errors and fight wrongful foreclosure.
Schedule your consultation here or call (813) 438-3695.
