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  1. #1
    Join Date
    Jul 2008
    Posts
    3

    Default Mortgage Company Not Paying Property Taxes from Escrow

    My question involves real estate located in the State of: Ohio

    My FHA home loan was refinanced the end of April 08. Within a month it was transferred to another company, along with $1144.00 in my escrow account which was applied at closing. The new lender failed to pay my property taxes which were due 5 weeks after the loan was transferred to them. There is currently $1600 in my escrow account. Taxes are for 1/2 a year, approximately $1000.00 each 6 months.

    Upon calling the new mortgage company to inquire as to why these were not paid, I was told that it was not their responsiblity to pay these taxes, it was the responsibility of the previous mortgage company, even though they did not have the loan when the taxes came due. I was then told they would "research" it and let me know what they found out, after 45 minutes on the telephone. The new mortgage company also refused at first to give me their tax mailing address, giving me my own counties address, then two other addresses. The previous mortgage company and title company told me it was the new company's responsibility to cover the taxes from the escrow along with the penalty charge and interest.

    I was charged almost $100 penalty by the county auditor for not paying these taxes on time. There is more than enough money in the escrow account both now and when the loan was transferred to the new company. I have owned my home for 4 years now and have never had this problem with previous companies transferring my loan. Any suggestions on how I can have the new mortgage company pay the penalty charge and interest due to me?

    Thanks!

  2. #2
    Join Date
    Apr 2008
    Location
    Texas (Dallas area)
    Posts
    1,404

    Default Re: Mortgage Company Not Paying Property Taxes from Escrow

    Quote Quoting mseg731
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    My question involves real estate located in the State of: Ohio



    The previous mortgage company and title company told me it was the new company's responsibility to cover the taxes from the escrow along with the penalty charge and interest.


    I am sorry that you had this problem. If the April 08 tax bill was due in under 60 days it was actually the title company who closed the transactions responsibility to disburse the funds to the taxing authority.

    If the title company did NOT pick up the taxes at the closing and instead forwarded the entire amount to your new lender, then your title company was the one who made the error.


    You will get a refund from your new loan company when they do their escrow impound statements once a year.

    If this is the case you can hold the title company at fault for the penalty.

  3. #3
    Join Date
    Jul 2008
    Posts
    3

    Default Re: Mortgage Company Not Paying Property Taxes from Escrow

    Thanks for your comments!

    I ended up faxing a (not so nice) letter to the mortgage company today, which included my tax bill, closing documents, escrow statements, loan transfer documents, etc., along with a paragraph stating I was forwarding the info onto The US Department of Housing and Urban Development and to The Mortgage Bankers Association of Housing Consumer Affairs Division, since it is an FHA loan. Within an hour after I faxed it, I checked my account online and it showed the mortgage company sent a payment out for the property taxes. They covered the penalty fees, too. I guess sometimes the squeaky wheel does get the oil!

    If I hadn't checked into the taxes being paid myself, I wonder how long it would have went on...

    Thanks again!

  4. #4
    Join Date
    Mar 2006
    Location
    Virginia
    Posts
    45

    Default Re: Mortgage Company Not Paying Property Taxes from Escrow

    Quote Quoting mseg731
    View Post
    Within an hour after I faxed it, I checked my account online and it showed the mortgage company sent a payment out for the property taxes. They covered the penalty fees, too. I guess sometimes the squeaky wheel does get the oil!
    Your online mortgage account showed the late payment from your escrow account? Did they credit your account for the penalty?

    I do agree with OhMy, the settlement/title company is responsible for ensuring fluidity of payments...part of what they're paid for. I would be looking to them for the penalty.

  5. #5
    Join Date
    Jul 2008
    Posts
    3

    Default Re: Mortgage Company Not Paying Property Taxes from Escrow

    The online account showed the original amount due was paid, not including the penalty amount. I spoke with the mortgage company on the phone yesterday to verify they would pay the penalty and interest because my account online doesn't list the amount they actually covered. I was told they would cover the penalty and interest since it was their error. I have to take their word for it as of now, but I will call the auditor's office in a few days to make sure.

    The title company transferred more than enough money to the first mortgage company, 94 days from the time the taxes were due. The first mortgage company transferred that money to the second mortgage company 36 days before the taxes were due. After refinancing, my first payment wasn't due with either company until 15 days after the the second mortgage company received the loan.

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