I am livid. In December 2005, A.M.C. paid my insurance escrow four times. They sent me a statement telling me my escrow account was $4775.00 in arrears..
When I contacted them about this, they admitted that they had sent four checks but until all $$ was returned, I would have to pay the additional $700 per month and then they would return it to me when the mistake was corrected. They would not make any effort to collect the funds, that would be my job. I got out my papers and looked at the escrow agreement. My escrow agreement does not say that I will pay their mistakes. My escrow agreement says that I will pay my Principal and Interest and 1/12 of my insurance and taxes each month. I refused to make the additional $700 each month and sent them my PITI as it should be collected.
Each month they reported me as making partial payments to the credit reporting bureau and called each month with rude and nasty people telling me that I was only making partial payments. That I was 90 days behind, that if I did not catch up, they were going to foreclose. I NEVER MISSED A PAYMENT. I PAID EVERY CENT OF MY PITI EACH AND EVERY MONTH. This all came about approximately 4 months before my Adjustable Rate Mortgage was due to increase. Imagine that.
So, when my ARM came up for renewal, I was unable to refinance due to their false reporting of my mortgage. Then on top of that, when my insurance $$ was returned they put it in my Principal account refusing to put it back in my escrow account and thus, stealing several thousand dollars of my insurance funds to their accounts. This continued for the past year and a half.
Then in November 2006, they refused to accept my payments and I could not get a straight answer from anyone. Then in March 2007, I received foreclosure papers and have since had to ruin my credit by filing a bankruptcy proceeding to stop them from foreclosure. My ARM has rolled over three times and now my payment has more than doubled. I received a letter two weeks ago that they have sold my mortgage to CitiLending.
Then yesterday, October 30, received a letter from CitiLending telling me that I have a $837.00 arrearage in my escrow account. THIS IS RIDICULOUS. I AM GOING TO FIND A DECENT ATTORNEY TO GET IN ON THE CLASS ACTION LAW SUIT... THERE IS NOT WAY THESE PEOPLE ARE GOING TO OVER PAY MY ESCROW AND THEN TAKE THE RETURNED MONEY AND USE IT TO APPLY TO A NEGATIVE BALANCE THAT NEVER EXISTED IN MY PRINCIPAL ACCOUNT. THAT IS STEALING AND A MAJOR VIOLATION OF RESPA...ANYONE WITH THIS SAME PROBLEM, PLEASE FIND YOU A REAL ESTATE ATTORNEY AND FILE A RESPA LAWSUITE AND A THEFT OF OVER $500 LAWSUIT IF YOU ARE IN THE SAME SITUATION. THIS IS STEALING...PLAIN AND SIMPLE.