Couple sues Mr. Cooper, Rocket Mortgage for foreclosing despite on-time payments

When servicing shifted to Mr. Cooper on April 1, 2025, the Swartzes resubmitted their recast request at the servicer’s direction. Mr. Cooper approved it in writing on April 29, confirmed it was completed on May 20, and on June 4 notified the couple that their private mortgage insurance had been dropped, setting their new monthly payment at $3,852.76 effective July 1. 

The couple says they paid that amount, on time, every month. 

Then things took a turn. On October 2, Mr. Cooper’s own monthly statement confirmed the next payment was due November 1, with $0.00 past due. Eight days later, on October 10, the servicer sent a letter claiming the loan was delinquent and demanding $12,265.02. After that, according to the filing, Mr. Cooper stopped accepting the couple’s payments altogether. 

By November 18, the alleged past due balance had ballooned to $30,122.01. The Swartzes sent a Notice of Error on December 2, flagging what they described as misapplied payments and false delinquency reporting to credit bureaus. The servicer, they say, did not correct course. 

On January 16, 2026, Mr. Cooper recorded a Notice of Default on the home, claiming $37,861.49 was past due. By January 21, the servicer’s statement listed a reinstatement amount of $43,661.98. The couple alleges the servicer never contacted them to discuss their financial situation or explore alternatives to foreclosure — despite filing a declaration stating it had tried with due diligence to do so.