Mortgage company did not pay my taxes & zeroed my escrow!

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I have had the same mortgage company for 7 years. In 2006 they paid my property taxes late, causing me to incur delinquent taxes ever since. I have tried for two years to fix that to no avail. I phoned them yesterday and they said they never received a tax bill from the county, then they said the county told them I owed no tax! Riiiight. I called the county and they did send the mortgage company a bill last October but never got a payment from them.

Now, I get my annual escrow statement with a check attached for $3767.40, and discover they did not pay my property taxes at all last November! If they had paid them on time my tax bill would have been $3636.41, but now it is $3975! I deposited the check, paid the county $3636.41 and told my mortgage company they need to pay the rest out of their pocket.

The other weird thing is the statement shows a balance of $5247.67 in December and the next motnth (January 09) it shows a blance of zero! There is no entry for their check to me of $3767.40. There should be a balance of over $1480 after they sent me that check. What did they do with my money?

I faxed them a complete account of their mistakes and action required on their part. I have copies of all correspondence and fax confirmations for over two years. Are they puling a fast one here and to what agency do I report this if it is fraud? Thanks,
Jannie May

jameshogg · Posted: Tue Dec 30, 2008 11:33 pm Post subject:

Hi janniemay,

I guess, the mortgage company has not given you the correct details and they didn't even pay your taxes properly. In my opinion you should immediately consult an attorney. You have mentioned that you have all the correspondence and fax confirmations for over two years. You will have to show it to the attorney and he will be able to guide you in a proper way.

Thanks

Jessica · Posted: Wed Dec 31, 2008 6:06 am Post subject:

Hi janniemay,

It's good that you have kept the copies of all correspondences with the mortgage company. I think the company is up to some kind of fraud. Perhaps they won't even listen to you even though you show them the proof of your payments and the tax bill. It's better that you file a complaint with the State Attorney General. By the way, in which state do you reside?

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I would also file a complaint with your State Attorney General if I were you. I would lean more towards incompetence of the mortgage company than fraud though.

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Hi, i have a seven year old mortgage with Citi. When we closed, we voluntarily opted to escrow taxes and insurance.
The last two years, Citi has adjusted our payments up and then down to offset shortages. When we requested to be removed from the escrow ( and manage it ourselves) they refused, claiming that our LTV doesn't meet requirement. They are using the sale price of the home to determine LTV. The county reassessed our value by $73,000 (more) four years ago. Citi will not accept this figure. Does anyone know if this is legal? Thanks

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Hi suzanne,

As far as I know, the lender usually utilizes the lesser of the appraised values. That's why I think they are using the sale price of the home to determine the LTV. However, I'm not sure whether they can force you to stick to the escrow on the ground that your LTV doesn't meet the desired requirement. I think you should consult an attorney as he can help you the best with this issue.

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You will need an actual appraisal done. If you then meet the LTV requirement, they'll drop the escrow. No one is going to accept any value from 4 years ago.

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