New Jersey Couple File Suit After Loan Servicer Screw-Up In Handling Mortgage Payoff Results In Damaged Credit Score

In South Jersey, the Gloucester County Times reports:

• When Paul and Heidi Wexler sold their West Deptford Township home two years ago, they made their final payment to the mortgage company and thought that was it. Some six weeks later, however, they learned something was amiss after being denied store credit to purchase furniture for their new home in Florida. The final payment on the home had not been processed, and the lender, Option One Mortgage Corporation, had filed pre-foreclosure proceedings.

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• The couple, married nearly eight years, has now filed a lawsuit against the mortgage company, claiming the mistake damaged their credit. The case was scheduled for trial this past week but has been put on hold while the two sides try to come to an out-of-court agreement.

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• "We're trying to make a statement here that the mortgage company's actions have real consequences for real people," said Pitman-based attorney Christopher Manganello. "It's the mentality of the big corporation thinking it can get away with anything. We're not going to let that happen here." [...] Option One has acknowledged that the Wexlers were not at fault, the couple's attorney said, but has done nothing more to repair the damages.

For more, see Couple runs into a different mortgage morass.