Mortgage Company not paying property taxes

We refinanced our house back in June of this year. The mortgage states that property taxes will be included in our payment and we have been paying the full amount with the taxes. I have our payment set up to auto deduct a week before it's due so they always have my money on time. The end of August I get a letter from the Township I live in saying we have not paid our quarterly taxes. My wife has been fighting with the mortgage company on an almost daily basis. They keep escalating it to other groups which gives them 10 more business days to investigate the issue. Each time there has been no resolution and it just keeps getting escalated to a different group within their organization.

So far I have filed a complaint with the Better Business Bureau and the State Department of Banking and Insurance. Those 2 complaints I just submitted today. Is there any other places I can take my complaint to? Any advice would be appreciated.

I am so frustrated with this company that I am ready to refinance again no matter what it costs as long as whoever I take the mortgage out with can give me a written guarantee it will not go to Ditech again. From my understanding though you never know what company will end up with your mortgage.

M & K M & K
Oct '15

The BBB is meaningless. Companies pay $ and they automatically have A+ ratings no matter who complains.

The State Bank authority is the right place to complain.


Thanks GC. I kind of felt it was a waste of time going the BBB route but I was so frustrated I wanted to complain to everyone who would listen. Thanks.

M & K M & K
Oct '15

Contact consumer financial protection , they will investigate

Cowgirl1 Cowgirl1
Oct '15

Shouldn't that money be going to an Escrow account?

BrownEyesGuy BrownEyesGuy
Oct '15

It is browneyesguy. I didn't explain myself correctly. Thanks cowgirl I will try them as well.

M & K M & K
Oct '15

Do you have enough equity to take the taxes out and pay them yourself??

Mr. Tone Mr. Tone
Oct '15

Sorry to hear about this M&K. GC is correct about contacting the Banking Authority.

This is why I pay my taxes and home owner's insurance myself, I don't trust the mortgage company. I understand that not everyone has this option. I know some people who are able pay themselves, but don't because they would just rather have the mortgage company handle it. Doesn't make sense to me, but to each their own.

Calico696 Calico696
Oct '15

Depends on the mortgage company. We have had a few over the 16 years we've owned our home and never, ever had a problem. I pay the mortgage and the mortgage company distributes the money accordingly.

Sorry to hear this is happening to you M & K. Good luck!

botheredbyuu2 botheredbyuu2
Oct '15

I also just went and bashed them on their Facebook page and have already had a response from them. I'm 100% on problem resolutions once I take to Facebook against businesses....lets see if I can keep that % with them.

I could take the money out and go and pay the taxes myself but I don't want to go that route for 2 reasons. We are in the midst of a big remodeling project on our house and I don't want to redirect money to pay the taxes myself. I want them to stand behind their screw up. The other reason is if I pay them, then the finance company pays them, I have to submit a request to the town to be issued my refund. I don't think it's a real quick process. I think it waits for the next township meeting, its put on their agenda, they approve the refund then the check gets cut. With our mortgage in the past our local bank was the servicing company and we never had a single issue. When the dust clears and all the remodeling is done I would like to take over paying the taxes myself to avoid further issues. I just like the idea of paying $550 / month vs cutting a check every quarter for $1650.00. The $550 a month I don't really think of as going towards taxes (even though it does)....I just think of it as my mortgage. If I cut a quarterly check to the township it just fuels the fire in my head about how much I hate living in NJ with it's high costs. Guess its just 6 with one option, half dozen with the other.

M & K M & K
Oct '15

M&K,
Check the settlement statement from closing back in June. They may have taken 3rd Quarter taxes (not your escrow monies) at closing and messed up the disbursement to the collector. If that is the case, it would be on the settlement agent to correct from that closing. Nothing to do with your mortgage company or current servicer. Have they stated which quarter taxes were not paid? If it was 3rd Q., guarantee this is the issue.
Good luck!

need help need help
Oct '15

same thing happened to me when i refinanced. i paid the normal amount every month and they werent paying the town. went on for a year. very frustrating

Connoly
Oct '15

Banks suck. My husband and I had our identity stolen when we refinanced, so did my sister and so did my in-laws. Someone used our info to file taxes to collect our return, still waiting for our return while the IRS "investigates" our situation. My in-laws had the same thing happen. My sister had money taken out of her bank account and credit cards opened in her name. My suggestion to anyone who buys a home or refinances is to pay for credit monitoring, all it takes is one person at the bank, broker office, etc... to steal your file and you are screwed.

Jane123 Jane123
Oct '15

And just like that, problem solved. I'm not sure what finally scared them into fixing this (whether it was the Consumer Fraud Protection Group, State Banking and Insurance Agency, BBB or the post I left on their Facebook page). We just got a call from someone who provided us their direct contact number and the Fed-Ex tracking number of my check which is going out today. I will follow up tomorrow with the township to confirm. My wife has a feeling it was the Facebook post that lit the fire under their tails (which I said in my post that I had filed the complaints under the 3 organizations). They immediately responded with an e-mail address to send our issue to. My wife e-mailed them the whole timeline of events and pointed out each broken promise they made. My wife ended the e-mail asking if they were going to be the 4th person to break a promise with us.

When the guy called with the Fed-Ex tracking number and his reach number he ended it with "he didn't want to be the 4th person to break a promise with us". So he was obviously aware of the e-mail from my wife.

Thank you everyone for your help with this. I'm glad I can finally put this nightmare behind me.

M & K M & K
Oct '15

Good for you.
Hope that it is solved for good.
what a headache.

BrownEyesGuy BrownEyesGuy
Oct '15

Glad to hear it.

Calico696 Calico696
Oct '15

Watch out!
Some of these "helpful" agents will purposefully cause mistakes, so their boss can repo your home!

Funny lady Funny lady
Oct '15

Good to hear!

botheredbyuu2 botheredbyuu2
Oct '15

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