Mortgage Sold...Shenanigans?

Well, our mortgage sold sometime during the past year from Flagster to a company called Caliber Home Loans in Oklahoma City. They have TERRIBLE reveiws. Come the end of the year, they are telling us we will owe an additional 109.00 per month to make up for "deficiencies". I inquired as to what the deficiencies were and he informed me that they have to keep a "cushion" in my escrow account to allow for future overages. My insurance went up about 60 dollars, but my taxes went down a couple bucks.

Flagstar never required this cushion and that I was told is a "company policy" w\ CHL.

Now, I understand that payments change over time bc of taxes and insurance, but this seems excessive. $109? Here is the kicker : It isn't OWED to any account on our mortgage. It will just sit there in their possession. What to do ? I asked if I paid the "cushion" (deemed to be 701) would my payments not go back to the same amount? Answer was a flat No because I needed to pay the cushion, plus they are collecting for future cushion as well. I explained to the rep that its either\or, not an AND scenario. Why would I owe additional cushion on top of the deemed cushion going forward if I wrote them a check for the cushion directly. He could not give me an answer.

They control my mortgage at an insanely low rate, but I don't know what in the world to do. I got no where and their phone tree is a nightmare. A quick google search revealed some major complaints on the web. Am I up a creek here? Just pay it and shut up?

Replies

  • CynicalCynical Posts: 274 Deckhand
    Cushion is determined by the servicer. Pay it and take some small comfort in knowing that everyone with escrows has the same issue. They aren't hoodwinking you--you will get an escrow disclosure statement at end of year that will show all payments made into and out of the account.
  • tapatetapate Posts: 5,263 Admiral
    Cynical wrote: »
    Cushion is determined by the servicer. Pay it and take some small comfort in knowing that everyone with escrows has the same issue. They aren't hoodwinking you--you will get an escrow disclosure statement at end of year that will show all payments made into and out of the account.

    Well..... Drat
  • Jim311Jim311 Posts: 4,945 Captain
    This is pretty much normal procedure. If it turns out you ARE overpaying they are federally required to refund your money at the end of the year. So even if you do overpay, you'll be getting that money back. I know it seems stupid that it comes out of your pocket only for them to refund it, but they don't want to get stuck paying money out of their pocket.
  • kgfisherkgfisher Posts: 628 Officer
    If you can, get them to suspend your escrow for taxes/insurance and do it yourself. I got really
    tired of the escrow games and now I pay those bills directly.
    "The fishermen know that the sea is dangerous and the storm terrible, but they have never found these dangers sufficient reason for remaining ashore"

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  • dstockwelldstockwell Posts: 13,803 AG
    Cynical wrote: »
    Cushion is determined by the servicer. Pay it and take some small comfort in knowing that everyone with escrows has the same issue. They aren't hoodwinking you--you will get an escrow disclosure statement at end of year that will show all payments made into and out of the account.
    This still sounds like a complete load of crap... Pay it just because...
    It is not the responsibility of the United States to solve the problems of other countries.
  • limitlesslimitless Posts: 648 Officer
    Well, we have something in common. Caliber is buying mortgages in the south as fast as they can get them - they bought two of mine in October. They have great flexibility in setting escrow "cushions" and you're right their customer service is a joke. Also, in my case, the initial mortgage locked in an additional 1/8th percent savings on rate due to agreement to escrow - so I cant get out of it. Caliber is the only mortgage company I've ever had that continually reads the disclosure "this is a debt collection company and any information provided by you will be used for the collection of a debt". If the payment is due on the 1st of the month and paid by the end of ther 15 day grace period, they consider it late.

    My biggest problem with them is that 2 weeks ago I got a letter form the tax collector in my county informing me that they were preparing a lien because my property tax had not been paid. It was due in October when Caliber bought my loan and Caliber's folks told me "it slipped through the cracks". After several calls, I'm waiting and hoping that they pay by the 6th.

    Bottom line: watch these guys and file complaints to whatever government entities you can.

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  • CynicalCynical Posts: 274 Deckhand
    dstockwell wrote: »
    This still sounds like a complete load of crap... Pay it just because...

    The borrower agrees to it contractually. It is in the closing package. So stockwell, kiss my ****. :)
  • flbluerunnerflbluerunner Posts: 715 Officer
    Flagstar sold my loan to Carrington a few years back, same crap. I finally demanded that they stop escrowing and now pay my taxes and insurance myself.
    Now my loan is back with Flagstar, they have had a lot of trouble putting my payment in the correct account to make their computers happy.
    I finally had to file a complaint with the Banking Commission to get the account corrected and late fees waived. All Flagstar's errors.
    Now I am getting a lot of pressure from Flagstar to refinance, it has been constant and a pain in the butt.
    Just wish they would let me pay my mortgage and leave me alone.
    John :USA
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  • tapatetapate Posts: 5,263 Admiral
    I would have loved to stay with Flagstar, never noticed they were there kinda thing.
  • dstockwelldstockwell Posts: 13,803 AG
    Cynical wrote: »
    The borrower agrees to it contractually. It is in the closing package. So stockwell, kiss my ****. :)

    Apparently not required to kiss mortgage company ****. :)
    I finally demanded that they stop escrowing and now pay my taxes and insurance myself.
    It is not the responsibility of the United States to solve the problems of other countries.
  • boscoeboscoe Posts: 79 Deckhand
    Do people with fishing problems go to legal message boards and ask for fishing advice?
  • fsuwxmanfsuwxman Posts: 1,285 Officer
    My mortgage was sold at the end of last year and the new servicer is absolutely horrific (Midland).

    Feel your pain.
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  • tapatetapate Posts: 5,263 Admiral
    boscoe wrote: »
    Do people with fishing problems go to legal message boards and ask for fishing advice?

    Apparently you are new here. welcome!
  • CynicalCynical Posts: 274 Deckhand
    dstockwell wrote: »
    Apparently not required to kiss mortgage company ****. :)

    Yes, kiss it. You don't know his situation or what his servicer's requirements were. Quit acting like a dolt.
  • CranfieldCranfield Posts: 1,432 Officer
    Hey man, "****" and "dolt" ?
    Is you English ?:huh
  • restlessnativerestlessnative Posts: 2,138 Captain
    Read your mortgage, if it doesn't say you have to escrow you don't. You'd be surprised how many people never read their legal docs and just sign them.
  • tagtag Posts: 8,855 Admiral
    Think of the big fat pot of money the mtg company has in their possession. It benefits THEM to squeeze as much escrow monies out of you as they can even though they have to refund a % over the extra. If they do that to 100,000 people they have a lot of free money to play with.
  • SwampratSwamprat Posts: 1,058 Officer
    tag wrote: »
    Think of the big fat pot of money the mtg company has in their possession. It benefits THEM to squeeze as much escrow monies out of you as they can even though they have to refund a % over the extra. If they do that to 100,000 people they have a lot of free money to play with.

    Tag nailed it......they are operating off the interest they generate from the extra money charged. Even though you get the money back only having to start back over they are making money off your money.
    Jackson Cuda 12

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  • dewyafishdewyafish Posts: 5,023 Admiral
    ferris1248 wrote: »
    Possibly one of those rebellious scotch/irish.

    Aye, your point being??

    On the overages...
    Exactly like the IRS from people who recieve refunds. The GLADLY pay refunds.
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