I financed my home through a reputable bank and my loan was later sold and then sold again to America's Servicing Company. I have a stellar credit report and have had no problems with my mortgage until dealing with this company.
I received a notice from America's Servicing Company telling me that my mortgage payment was going to increase by over $200 per month due to an escrow shortage. I called them to question this because I knew I did not have a shortage and I had actually received money back the previous year from escrow overpayment. I was told that I am required to keep over a $2000 balance in my escrow account IN ADDITION to the money that was already being deposited into my escrow account every month. So basically they were telling me that I had to keep over $4000 in my escrow account in order to pay about $2200 in escrow payments for the year. I have never heard of an escrow account requiring a minimum balance and had certainly never kept a balance in there before now. Why should THEY make the interest off of my $2000?? I could see if maybe I made irregular payments or I was a financial risk to them in some way but every single mortgage payment I have ever made has been in full and early.
So, I called back later to ask if I could just opt out of escrow all together. I would just assume the responsiblity for my taxes and insurance myself and provide them with any necessary documentation. They said I could that I just needed to fax over a letter stating my intentions. So I did, I wrote a very clear letter stating my intentions and it had all of the pertinent information in it.
Two days later I called to make sure they had received the letter. They had not. I faxed it again writing in bold letters "SECOND FAX PLEASE FILE" at the top. I again called back in 2 days to make sure they had received it. I asked when my payments would be changed and if I could just send my next payment without the escrow added to it. They told me that I could not do that because they would not even accept a partial payment.
At that time they told me that I would receive a letter by June 6 (approximately 10 days away) telling me if I would be able to opt out of escrow. Now, they had already told me when I called previously that I could.
So, I received a letter stating that they had received my inquiry and that they would look into the matter within 90 days! So, in the meantime I am stuck paying the ridiculously inflated mortgage payment for NO REASON because I am not about to risk my credit over these people. It seems that my only option is to refinance my house, otherwise I have to pay their inflated payments until they decide to figure out whether or not I can opt out of escrow!
These people do not know what they are doing, I get a different answer from a different person everytime I call and they are certainly not in the least bit concerned about customer service. I am planning to call them back, tell them I am refinancing the loan if I do not have an answer about this escrow TODAY. And then I will spend the $2000 or whatever just to get out from under this company and their inflated escrow account nonsense.
The sad thing is, my new loan could just be sold again to the same company. Where are our rights as mortgage payers here? Why do we have no say in who we do business with, send our money to and rely on for support and customer service?