ED Magedson – Founder
Green Tree Servicing LLCPO Box 6172, Grand Rapids, South Dakota USA
Green Tree Servicing LLC Bogus "Escrow Cushion" Excuse to Ripoff Millions Grand Rapids South Dakota
Since Green Tree has purcahsed the servicing of my loan from BAC, there has been nothing but illegal attempts to take money out of my pocket. This month, instead of my regular mortagage payment statement I received a statement that increased my monthly payment by $ 40. The payment is due in at the threat of late fees in 6 DAYS! No other finincial servicing company that I have ever dealt with presents you with an increase in payment without any explanation and functionally gives you no time to find out what is going on before you are slammed with late fees for non-payment.
So, what is the $ 40 for? Well, after 90 minuutes on the phone with GT, it turns out it is not for insurance ( my homeowners insurance actually went down this year) nor is it for taxes, which did not go up this year. It is for an "Escrow Cushion". That's right an Escrow Cushion. And what is that? Well, it turns out that is simply a rationalization to collect money that is not owed, as there is no reason for it to exist, except to make money for GT.
What can you do? First, you can ask for an escrow waiver. An escrow waiver allows you to pay your own home owners insurance and taxes.Then, they have no reason to demand any money beyond principal and interest. You can also write your state AG with a written complaint, and ask them to contact Green Tree and ask them to legally justify each and every "escrow cushion" fee they are demanding of their clients, and force them to provide a 90-day advance notification whenever they plan to raise payments, which is how legitamate companies behave.
This report was posted on Ripoff Report on 09/25/2013 06:10 PM and is a permanent record located here: http://www.ripoffreport.com/reports/green-tree-servicing-llc/grand-rapids-south-dakota-57709/green-tree-servicing-llc-bogus-escrow-cushion-excuse-to-ripoff-millions-grand-rapids-so-1087374. The posting time indicated is Arizona local time. Arizona does not observe daylight savings so the post time may be Mountain or Pacific depending on the time of year.
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