A Columbus, Ohio, homeowner is suing Rocket Mortgage over allegations that the servicer shredded her money orders and pursued foreclosure despite receiving sufficient payments.
The federal lawsuit, filed on February 26, 2026, in the Southern District of Ohio, paints a troubling picture of what can go wrong when mortgage servicing transfers don’t go smoothly — and what happens when a borrower’s repeated attempts to fix the problem are allegedly met with more problems.
At the center of the case is a residential loan originally financed through Flagstar Bank in 2006. After passing through multiple hands, the loan landed with Rushmore Loan Management Services in early 2022, and then with Rocket Mortgage in late 2023, when Rocket acquired RLMS and rebranded it as Rushmore Servicing. According to the lawsuit, the trouble started well before Rocket took over. RLMS allegedly misapplied multiple payments and tacked on unexplained fees. But rather than cleaning up the mess it inherited, the suit alleges that Rocket made things worse — providing the borrower with conflicting payment addresses, some of which turned out to be defunct RLMS addresses. That confusion allegedly led to payments being sent to the wrong location, forcing the borrower to have the U.S. Postal Service retrieve and reroute them…