Loan Servicer Switch Lands One Homeowner Couple In Costly Mess

A recent column in The Philadelphia Inquirer details how a screw-up relating to the transfer of the servicing rights by one company to another on mortgages owed by a New Jersey couple landed them in foreclosure, cost them $15,000 in legal fees, destroyed their credit, resulted in reductions in their credit lines, and caused them to raid their 401(k) to pay for college tuition because no one would lend them money while the foreclosure was an issue -- all this despite having promptly made their mortgage payments.

For the story, see Blindsided by switch of servicers.