Was Your Mortgage Transferred While You Were Under a Temporary Payment Plan?
Many Florida homeowners entered temporary payment plans or loan modifications during financial hardship — only to find that their mortgage was suddenly transferred to a new servicer. When that happens, confusion often follows: payments are misplaced, credit reports show missed payments, and foreclosure notices arrive out of nowhere. These mistakes can be devastating, especially when you’ve done everything right.
At Rebecca Goodall Law, P.A., we help homeowners protect their rights when mortgage transfers and payment plan errors threaten their homes or credit. Whether your account was transferred mid-plan or your payments were mishandled, there are legal remedies available to correct the damage and hold servicers accountable.
How Mortgage Transfers Happen — and Why Problems Arise
Mortgage loans are frequently sold or transferred between servicing companies. When this happens, the new servicer must send a “Notice of Transfer of Servicing” explaining when they’ll start handling your loan and where to send payments. If you were under a forbearance, modification, or trial plan, that agreement is supposed to carry over to the new servicer.
Unfortunately, many homeowners discover that their new servicer doesn’t honor the prior terms. Payments are returned or misapplied, late fees are added, and credit reports show missed payments that never should have existed. In some cases, foreclosure proceedings begin while the borrower is still making payments under the agreed plan.
Common Issues We See After a Mortgage Transfer
- Payments not credited: Funds sent to the old servicer are not forwarded or applied correctly.
- Plan not honored: The new servicer refuses to recognize an approved modification or forbearance.
- Credit report damage: Late or missed payments are reported even though you complied with your plan.
- Duplicate billing: Both servicers claim you owe money for the same month.
- Foreclosure threats: Homeowners receive notices despite being current under prior agreements.
These issues are not just administrative mistakes — they may violate state and federal consumer protection laws, including the Real Estate Settlement Procedures Act (RESPA) and the Fair Credit Reporting Act (FCRA).
Your Rights Under RESPA and Federal Law
RESPA requires mortgage servicers to handle transfers properly, respond to borrower inquiries, and correct account errors. If a servicer fails to do so, you can send a written “Qualified Written Request” (QWR) or “Notice of Error” demanding an investigation. They must respond within strict deadlines — and ignoring these requests can lead to liability.
Our firm assists homeowners in preparing and sending these letters, ensuring they’re formatted correctly to trigger full federal protections. We also track deadlines to confirm compliance. When servicers fail to respond or continue harmful reporting, we pursue legal action to recover damages and correct your record.
Protecting Your Credit After a Servicing Transfer
A mortgage transfer gone wrong can devastate your credit. Missed payment notations can drop your score by 100 points or more, even if you never missed a single payment. These errors can affect your ability to refinance, buy a vehicle, or even qualify for certain jobs.
Through our Credit Reporting Dispute Services, we help clients file FCRA disputes to remove inaccurate data and hold credit bureaus accountable. If the servicer or bureau refuses to correct the mistake, our firm can take them to court through our Suing Credit Bureaus for Inaccurate Reports service.
Example: Payment Plan Ignored After Servicing Change
A client in Pasco County was under a three-month trial modification. She made every payment on time. Midway through the plan, her loan was transferred to a new servicer, who claimed no knowledge of the agreement and marked her as 90 days delinquent. The client received a foreclosure notice within weeks. We intervened, provided documentation, and filed a complaint under RESPA and FCRA. The servicer removed the delinquency from her credit report, reinstated the modification, and paid damages.
What to Do If Your Mortgage Was Transferred Mid-Plan
If you’re in this situation, take the following steps immediately:
- Document everything. Keep copies of all letters, emails, payment receipts, and plan agreements.
- Confirm payment addresses. Verify where your payments should go and when the transfer took effect.
- Check your credit reports. Visit AnnualCreditReport.com to see if late payments were reported.
- Send a written dispute or QWR. A formal letter creates a legal record of your complaint and forces a response.
- Get legal help early. Mortgage servicers often respond faster once an attorney is involved.
How Our Firm Can Help
At Rebecca Goodall Law, P.A., we assist homeowners across Pasco County in defending against wrongful foreclosures, credit reporting damage, and servicing errors. We can:
- Investigate improper transfers and payment misapplication
- File disputes under RESPA, FDCPA, or FCRA
- Negotiate reinstatement or new modification terms
- Pursue damages for reporting and servicing violations
We proudly serve clients in Elfers, New Port Richey, Holiday, and surrounding areas who want a knowledgeable advocate on their side. If your mortgage transfer has caused confusion, stress, or credit damage, we can help you take back control — and keep your home safe.
Call (813) 438-3695 or schedule a consultation today. The sooner you act, the more options you have to fix the problem and protect your financial standing.
