In August of this year I attempted to increase my home equity line. The lender did a full underwriting for the increase.
In reviewing the credit report they stated that my credit report showed a loan modification.
Around April of last year Capital One sold their mortgage servicing portfolio. The supposed loan modification according to the new lender was in 2012. My mortgage with the new servicer was an adjustable rate loan which adjusted in 2012 for 7 years.
The new servicer is showing a modification while the old servicer never reported a modification. The loan was originally with ING Direct and they had a feature which allowed you to get the interest rate reset by paying them consideration. As I recall the payment was typically equal to the current payment on the mortgage.
Why would they do this? It's because I'm sure they would rather renegotiate than lose the loan by a refinance.
The kicker to this is that I was denied the increased credit line. Today I received paperwork from the new servicer showing the theoretical modification. After reviewing the paperwork the new interest rate wasn't even for the property that the new company was servicing.
What are the options that I have to take action against the servicer? I was forced to sell investments at a lost because of not having the new home equity loan in place.