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From Bad to Worse

December 10th, 2013 at 03:57 pm

I am SO SICK of my bank. When we go to refinance I will be shopping around. They have messed up so many times I am about to go in there and start screaming!

I stopped into the bank yesterday as I made my December payment to ask what my payment for 2014 will be. My taxes and insurance dropped and by my calculations it should lower about $50.

Well they informed me that they could not give me an answer right away, but in the computer it shows a shortage in my escrow account! Of $700.... that has to be paid within a week! Say what!?

We got the loan back in August of 2012. When we got it they said all the taxes and insurance had to be put through escrow, and they assured me that they would take care of everything and make all the payments, and yadda yadda. We did not have to lift a finger.

Well fast forward 4 months, and I stopped by the insurance place to see about getting my rate lowered. They could not find my account. Turns out the bank thought I was going to open the policy (even though they said it was their job and I was paying them the escrow) and we were without insurance for 4 MONTHS even though we were paying escrow.

They apologized and we got insurance without burning the house down.

Then in Sept of this year I got my little card that said my taxes were due. I remember the insurance incident, so just to double check I called the court house to make sure it was paid....

Well no, they hadn't paid it and now it was 2 weeks late and I owed a fee! GAH! I called the bank and argued and they had to call the courthouse and apologize and they got them to waive the fee.

Their reason this time was that the courthouse never sent them a parcel number after my land was divided when we bought it... Did they not notice that they had not paid taxes for the year. Geez!

This escrow crap is NOT panning out.

Now they are telling me that we were suppose to pay the first year of insurance out of pocket and since they paid it with escrow that we have to pay it now. I have NEVER gotten a single notice or no one ever told me that I would have to make it up later. And it seems as if they knew this entire year. I could have been putting back money! If I had not stopped in and asked, I probably would have not even known until the day it was due!

The whole thing is stupid though. There is still plenty of money in the escrow account, and the taxes and insurance was just paid last month. By the time a year goes by and they are due again there will be more than enough money in there.

Not only that but it looks like my payment is only dropping $30 instead of $50.

They could not give me a straight answer on anything, but they said they will print up a sheet tomorrow and go over it with me.

I am seriously fuming over this! How can they expect me to pay up $700 with NO WARNING in one week. And why do they need it if there is already enough in escrow. I am going to have to take out a personal loan to cover the amount, just so it can sit and waste in my escrow account.

This is all after they charged me $45 dollars for checks. Which surprising came out of my account last night, without even telling me. Good thing I have a cushion...

Sigh. Good news is my washer magically started working again.

9 Responses to “From Bad to Worse ”

  1. Joan.of.the.Arch Says:

    Sounds like there are a _lot_ of mix-ups. I feel for ya!

  2. ThriftoRama Says:

    Do I want to know what bank? The loan on our first house was sold to Citigroup and they were a nightmare. I'm thankful I don't have to deal with them anymore.

    As for the $700 shortage, oftentimes, they adjust how much 'padding' they want in your escrow account-- i.e. the bank's policy on what percentage over and above your pending bills they want to have as a pad on your account-- is reset. This is likely what it is. It happens to us occasionally, but they usually give us the option to pay in a lump sum or add x amount to the monthly payment.

  3. Kiki Says:

    You may have a case against them as they are not acting in your fiduciary interest the way they are supposed to.

  4. klarose Says:

    It is a local bank, not a large chain. So no worries that you will have to deal with them.

    I think my parents are going to float me a loan, but I'm still fuming.

    I see no reason for me to have to take out a loan so they can have a larger cushion of money sitting there, gaining no interest.

  5. klarose Says:

    I believe they would allow me to add it to my loan payments. But I just got the payments lowered and I was hoping to continue paying the same amount and pay down the principle. I am really just upset that they gave me no warning, it is not very good business.

  6. snafu Says:

    There is a serious communication problem at your branch and I suggest you inform the various agencies where banks must report. I'd be insisting, politely but firmly, to specific branch manager, regional manager, that compensation be awarded to help ameliorate the problems they've created. American banks truly need to follow regulation and pay some bit of attention to customer satisfaction. The public needs to make their voices heard since the 2008 debacle.

    I'm puzzled that homeowners don't track how monthly sums are disbursed to PIT [principal,interest,tax] PMI, insurance, HOA+ any escrow expenses. I suggest reviewing insurance coverage and costs with an Insurance Broker. There is often a discount when home & auto insurance are with one agency. Does the bank get a commission or financial benefit by referring mortgagees? BTW, most insurance is offered by giant re-insurers; your insurance agent is mostly a commission ed product salesman with an annual renewal fee. Should you have a claim anytime in the future, you will be referred to 'Claims' whose job it is to reduce or deny pay-out.

    In many communities, municipal administration has some type of monthly property tax system.

  7. Xtreme Thunder Says:

    I would ask them for an escrow analysis. Estimating your escrow can be a bit finicky, as it is not dollar for dollar. The $20 discrepancy from your calculation and their's may be due to them allowing for a tax increase come next bill for taxes and insurance. However, I am not sure where the large shortfall would be, unless there was a tax never accounted for, i.e. some municipalities have a separate fire tax bill from their property tax bill. In your loan documents, there should be a number listed for the escrow not to exceed/ deplete values, I would look into that as mentioned by another poster above as it is possible they took too little at closing. It is also interesting that the bank sets up your homeowner's insurance, usually you set it up and give them the banks information and loan number. I know when we were closing, we needed to pay first year of home owner's insurance in full, out-of-pocket separately. Keep on them though!

    I know how you feel always needing to keep on the bank and escrow. Our mortgage is service by Wells Fargo and they pay our property taxes in quarterly installments and school taxes in bi-annual payments as allowed by the governing agencies. Here's the kicker, our property is split between two municipalities, so that is twice the amount of bills to keep track. In addition, the City side of the property adds a surcharge for quarterly installments, where they pay the Town side in full. I have fought with them forever to get them to pay in full when due, but they resist and I have to ask to be reimbursed every year for the surcharge, they don't offer it up automatically!

  8. Petunia 100 Says:

    That sounds very frustrating. Do you have equity in your home? If so, you may want to skip the escrow account when you do your refi.

    I like having an escrow account. But then, I've never had to deal with my lender "forgetting" to pay my property taxes and insurance. I'm certain that would color my opinion.

    In California, escrow accounts do earn interest, which is nice.

  9. TashaC. Says:

    Whoa that is horrible! Makes me grateful my mortgage has been easy. So many ways to get complicated and your bank hit every one of them! I'm glad you are on top of it.

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