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Burned by my Mortgage sold to another Company

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A

AnnaP

Guest
What is the name of your state? Kansas
In early May 2004 I received a letter from my mortgage company stating I had an escrow shortage. I expected this. The letter stated the shortage was divided by 1/12, added to my current payment, and the payment was refigured to include the shortage and the new escrow payment. I was given the option of paying the shortage and having my payment readjusted to reflect the correct monthly payment which I did and the mortgage company received the shortage & the monthly payment on June 14, 2004. I expected the payment to be adjusted for the July payment. I received 2 payment notices which showed the escrow shortage paid to the escrow account yet the monthly payment was not adjusted to reflect this. When I called my mortgage company to find out the correct monthly payment to make I was told my mortgage was sold to another company last week and they no longer had my records. I received the new mortgage company name & number and promptly called them. I was told my monthly payment was the last UNADJUSTED amount and "MAYBE" the extra escrow payment would be transferred to them which would lower the payment. We are only talking about $300.00, but I scraped to get it just to keep the payments manageable for my income. I was also told by the new company if I wanted an adjustment it would raise my payment to over $100.00 more per month since I still showed a shortage in my escrow. I was very upset and felt like I just tossed $300.00 out the window. I called back the original mortage company and told them I didn't think this was right. They responded with the other company probably has different rules about escrow balances and they would send my a history of my account so I could at least have some proof I paid the $300.00. Do I have any kind of recourse against this? If I can't lower the payment to the level I expected, I want my $300.00 back! Can my Mortgage just be sold like that and I should expect an instant increase in my payment? Was my original mortagage company in the wrong by not adjusting my payment before the loan was sold? I sure would appreciate some guidance.
Thanks!
 


HomeGuru

Senior Member
AnnaP said:
What is the name of your state? Kansas
In early May 2004 I received a letter from my mortgage company stating I had an escrow shortage. I expected this. The letter stated the shortage was divided by 1/12, added to my current payment, and the payment was refigured to include the shortage and the new escrow payment. I was given the option of paying the shortage and having my payment readjusted to reflect the correct monthly payment which I did and the mortgage company received the shortage & the monthly payment on June 14, 2004. I expected the payment to be adjusted for the July payment. I received 2 payment notices which showed the escrow shortage paid to the escrow account yet the monthly payment was not adjusted to reflect this. When I called my mortgage company to find out the correct monthly payment to make I was told my mortgage was sold to another company last week and they no longer had my records. I received the new mortgage company name & number and promptly called them. I was told my monthly payment was the last UNADJUSTED amount and "MAYBE" the extra escrow payment would be transferred to them which would lower the payment. We are only talking about $300.00, but I scraped to get it just to keep the payments manageable for my income. I was also told by the new company if I wanted an adjustment it would raise my payment to over $100.00 more per month since I still showed a shortage in my escrow. I was very upset and felt like I just tossed $300.00 out the window. I called back the original mortage company and told them I didn't think this was right. They responded with the other company probably has different rules about escrow balances and they would send my a history of my account so I could at least have some proof I paid the $300.00. Do I have any kind of recourse against this?

**A: yes, where is your evidence that you paid the $300? Send them a copy of the cancelled check with your cover letter via certified rrr mail. I don't see what's so hard about that.
**********
If I can't lower the payment to the level I expected, I want my $300.00 back! Can my Mortgage just be sold like that and I should expect an instant increase in my payment?

**A: read your mortgage docs. Many mortgages are sold and the docs give the compnay a right to sell. I am not sure what the increase is about.
*********
Was my original mortagage company in the wrong by not adjusting my payment before the loan was sold? I sure would appreciate some guidance.
Thanks!
**A: possibly.
 
A

AnnaP

Guest
I have a statement showing the extra amount was applied to the escrow. The original Mortgage Co doesn't dispute that. But they did not adjust the payment before the loan was sold. I am sure that is why the new Mort. Co is saying the payment due is the unadjusted amount.

I was told by the new Mort. Co. there was a escrow shortage of a little over $200.00 and if they refigured the payment it would increase according to their records. When I contact the original Mort. Co. they said the new company would have different escrow guidlelines and the increase would most likely be (what I understood to be) a "buffer" of to make sure the funds would be there when anything had to be paid out of the escrow.

I have no problem sending the proof via certified mail. But in doing this am I tightening the noose by the new Mort Co thinking I am requesting they review the escrow amount which I have already been told to do so would increase the monthly payment?

The problem appears to lie in the original Mort Co not fulfilling their responsibility by recalculating the monthly payment before sending the the information off to another Company.

I do appreciate your comments!
Thanks - AnnaP
 

HomeGuru

Senior Member
AnnaP said:
I have a statement showing the extra amount was applied to the escrow. The original Mortgage Co doesn't dispute that. But they did not adjust the payment before the loan was sold. I am sure that is why the new Mort. Co is saying the payment due is the unadjusted amount.

I was told by the new Mort. Co. there was a escrow shortage of a little over $200.00 and if they refigured the payment it would increase according to their records. When I contact the original Mort. Co. they said the new company would have different escrow guidlelines and the increase would most likely be (what I understood to be) a "buffer" of to make sure the funds would be there when anything had to be paid out of the escrow.

I have no problem sending the proof via certified mail. But in doing this am I tightening the noose by the new Mort Co thinking I am requesting they review the escrow amount which I have already been told to do so would increase the monthly payment?

The problem appears to lie in the original Mort Co not fulfilling their responsibility by recalculating the monthly payment before sending the the information off to another Company.

I do appreciate your comments!
Thanks - AnnaP
**A: stop playing games and contact both companies via certified rrr mail.
 
HomeGuru said:
**A: stop playing games and contact both companies via certified rrr mail.
Look up R.E.S.P.A. According to Section 6 of RESPA provides that borrowers may make a "qualified written request" to the lender concerning the servicing of their loan account. The request should not be included with the monthly mortgage payment. The lender must acknowledge the complaint within 20 business days and must resolve the complaint within 60 business days. If you do not get a satisfactory answer from the lender, you may wish to file a complaint with HUD. You should continue to make your mortgage payment during this time.

http://www.hud.gov/offices/hsg/sfh/res/respafaq.cfm

When a loan is transfered for servicing to a new company there is a 60 day period of "grace" for the new servicer.

I would make copies of your canceld check, statement showing the shortage was paid and request the servicer to recalculate your payment. I would then make the lesser payment until they fix it on their end.

I would also keep accurate records of what transpires. If the matter is not resolved in 60 days I would file a complaint with HUD.
 
I also forgot to add that when you send your request, send it to the correspondence address. DO NOT SEND IT TO THE PAYMENT ADDRESS!

I would send it by certified mail and regular mail just for safety purposes.
 

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