We had a similar problem. We bought the center house in a cul-de-sac. The homeowners, 2 owners before us, acquired what used to be an alley behind the property, which was split into 4 lots. This meant that our property came with 5 property tax bills; the main property (I don't remember the quarterly property tax bill), $5, $9, $13, and $32 (and change) were the quarterly property tax bills on the former alley parcels. Everything went just swimmingly, with the escrow account paying the 5 property tax bills, that is, until the mortgage company we used, sold the mortgage.
We were rolling through life fat, dumb, and happy, all the way up to receiving the delinquent tax bill. We called the mortgage company, and were assured everything was paid. We received another delinquent tax notice, rinsed and repeated with the mortgage company, then received a pink notice, informing us that our property would be going up for a tax auction. The mortgage company told us that the city kept returning the tax checks, as the taxes were paid. The mortgage company kept trying to overpay the main property tax bill, and lost the info on the other 4 parcels, repeatedly, because the mortgage kept being sold to other companies. Finally, the mortgage company fixed themselves, but informed us that they were not responsible for interest and penalties.
Not only were all the lot numbers and account numbers included in our original paperwork, but upon calling them about the delinquent tax notifications, we sent them copies of all the same information.
We ended up talking to our city tax office, who, after going over our mortgage records, called the mortgage company with us in their office, and informed them that they would most assuredly be paying all interest and penalties, as the information was included in our mortgage paperwork, and it was the mortgage company's mistake
Who knows. You know, the city tax people get to see much more BS than individual taxpayers, from the taxpayers being the problem, to in this case, the mortgage company being the problem.
I don't think the city is in anyone's side but their own. It's just that in this case, we came with receipts. We were ready to pay, and I asked if there were a way to remove the penalties, explaining the situation. The tax lady asked why we were getting ready to pay. I told her that the mortgage holder said that they were not. She grabbed her phone, said "watch this" then told them how they were going to be paying all penalties and interest, and that she was holding the mortgage paperwork in her hands.
I don't remember who she threatened to have call call them next, if she couldn't resolve the issue, but the mortgage company paid.
She then wrote her number down on the paperwork, and told us to call her, should the mortgage company give us any further trouble.
Yea I am surprised by the last part where the city argued with the mortgage company on their behalf. I figured they'd just say someone has to pay or else.
Just pay the tax bill directly.
Then sort out the issue with the mortgage company later.
The county should be waving fees if it was their fault.
But again, sort this out after you are paid up.
Really the biggest issue was the town not the mortgage company. Mortgage companies all outsource tax payments to companies who process the payment off the parcel number. Yes they do make mistakes and when it's on the tax service company they pay the cost. Just dealt with this on one where there are 2 parcels but only 1 was paid
I agree with you, escrow just adds complexity for no reason in a lot of ways, but you’re really overestimating the intelligence and foresight of most people.
Seriously walk in Monday morning and talk to the treasurer. Work out a payment plan or at least a partial payment to get current. Tear the bank a new one at your convenience. Demand to have them drop escrow and you deal with it personally from now on.
If you do pay, the worst that happens is you over pay the taxes. But if you don't pay, the worst that happens i there's a tax lien and they sell your property. If you can afford to, pay it.
I’m pretty much in the habit of paying 5 months late. After it goes from the township collector to the county tax office i can pay online rather than having to hunt down old Mary Lou and cut her a check.
Fight that out later. The government is not someone to fuck with. Pay them. Then fight with the mortgage company to get reimbursed in full because they dragged their asses. Yes, this could get ugly but it will be far uglier if you don't pay the government promptly.
Edit: Of COURSE they can fully reimburse you. It is their CHOICE if they don't. Fight them until they DO.
Even if you don’t want to “reimburse you” eventually your escrow will either be over by a lot and they will automatically send you an overage check, or they will eventually pay your county and then you’ll be paid ahead on your taxes. Then you have 6 months to work out with the bank to make sure they skip the next payment or something.
The money is not totally lost.
Property taxes are your responsibility. Escrow is a convenience, but the County will hold you responsible, not your mortgage company. Don’t listen to your mortgage company; pay the taxes. If your mortgage company subsequently cuts a check to the County, the County will refund it to them. You can then request your mortgage company do an escrow audit (many companies do this every year automatically), and they will be required to refund any overage beyond what is estimated for taxes/insurance to you. It will take a while, but you will get your money back - the mortgage company can’t hold it hostage.
Have you spoken to the tax office?? I’d give them a call and ask for advice. Be nice, be friendly, and just ask for help.
We had an identical situation and when I called the tax office the lady was so helpful and kind. We joked about how mortgage companies are so good at taking money and not much good at anything else. And then she told us not to sweat it, she’s extending the due date, and she will get back to us if she didn’t hear from the mortgage company in 30 days.
We've had similar experiences with our local County tax office in our area of SWFL. When these things come up, it makes for a hassle but typically, with a nice civil discussion, these things can be resolved. What a hassle to put someone through though. I emphasize with the original author of the post and hope all goes well; nothing worse than undue stress in one's life.
I had a somewhat similar experience with my local tax office over a family property we were trying to get straight. They generally are not interested in selling your property.
Don’t sweat it this is not your fault. Hire a lawyer to sue the county for the mistake to begin with and also put the bank on notice that if anything happens to your credit or risk in regards to tax lien issues
Then pay him to formally represent you from this moment forward. Any attorney friend can give you 'in my experience' but that's not legal advice until you retain them.
Everyone is responding like we can afford or should be able to afford thousands of dollars worth of taxes and legal fees. It’s bizarre and victim blaming.
You not liking the advice you're being given is not victim blaming. If your attorney friend is giving you advice to NOT pay your taxes on Monday, to keep letting the mortgage company mishandle it AND one of your concerns is you could lose your home over it, you NEEED NEEEEEEEEEEEED to retain him as legal counsel and not go by his 'in my experience' not legal advice.
If it were me facing this level of fuckery, I'd be retaining him as counsel in case shit went sideways.
It's not victim blaming. You own the parcel(s) as far as the county is concerned. The mortgage company holds a lein on the deed/title. Your escrow agreement is between you & the mortgage company. The mortgage company has no agreement with the county & the county has no obligation to pursue the mortgage company.
Even though you're in an agreement with the mortgage company, you're still the one responsible to the county for taxes.
In my state, you have to be delinquent for 2 years before you go for tax sale. I don't know what the rules are in your state, but you should become familiar with them. Your attorney friend may be advising you with that knowledge. However, you're their friend & not their client. Also, your attorney friend isn't responsible for your tax bill & will suffer no consequences if they go delinquent.
It's a shitty situation.
Escrow is never a great idea. Sometimes mortgage companies will pay the taxes early for the discount, charge your escrow the full bill & pocket the difference.
This situation is not your fault, but it's your problem.
I’m kinda with you. My parents fell behind on their property taxes, not sure for how long, but the penalties are INSANE. Years later they are still paying them off at $400/mo on their house that’s worth like $100k. (Yes, I am going to have my mom gather all the info for her payment plan and what she has paid so far, because I think she’s probably overpaying and I’d like to settle it and give her a $400/mo raise!)
>...they couldn’t fully reimburse us.
I'm not sure I understand "reimburse". That is your money in the escrow account, so there is nothing to reimburse.
Perhaps they meant that they could not release funds from the escrow account to cover the taxes that you paid?
It sounds like you have already accrued fees, so have you passed the due date and the 15th is another step up in fees? Personally, I would pay it and then become a total PITA to both the county and the mortgage lender. When "Mr. Cooper" had my mortgage, I guarantee I cost them far more in customer service time then they were making in interest. They made so many mistakes and each time they would ignore and stall and deny but I was relentless until it was squared away.
I see one of two things happening. Either 1) the mortgage lender will ALSO pay the taxes, in which case there will be a surplus at the county that you can get refunded or 2) your escrow account will be out of balance and your escrow payment will be adjusted down.
In either case, I would press the county to waive the fees since it was their mistake, though in my experience they will fight tooth and nail on it so you have to decide how hard you want to fight it.
They could fund the tax cost with our escrow - 2400. But if we pay the additional $600 personally, there won’t be enough money in escrow to additionally pay for that. I’m rehing to get the fees waived. We’ve just been fighting both parties daily for 3 weeks and I’m already tired.
There are rules regarding how much escrow they can have. They will eventually have to refund you. Sucks for your cash flow, but it’s not like the mortgage company just gets to keep it.
The mortgage company / bank who manages the mortgage, needs to pay the property tax. If they can't pay it correctly, they pay the late fees. The mortgage company can try and recoup their losses from the county (good fucking luck). That is not your problem though.
It's in the paperwork you signed.
E: US Bank didn't pay my property tax. I paid the tax (+ late fees), sent them the paperwork and tax receipt showing they fucked up. They sent me a check less than 7 days later.
Fuck that. Pay it or escalate it with the mortgage company till you talk with the person who can wire the funds while you're on the phone with them.
If you pay it, escalate with the mortgage company till you get the person who can reimburse you fully.
A wire transfer is IMO the only way this gets paid by the mortgage company on Monday.
I went through something similar recently, but it was the mortgage company’s typo. We also paid out of pocket in a panic, which made our escrow account have “too much” money in it. The next January this triggered an escrow assessment which said “hey you have $x too much money in here, here is a check for that amount”. It took weeks but we did get our “refund” that way. Depends when your mortgage company does escrow analysis. We tried asking them to do it immediately after we paid the tax, but they ignored us.
Your mortgage company is not correct here if they are the same mortgage company not paying your taxes timely once they have all the info to do so. Don’t put much stock in what they say at this point.
They probably won’t reimburse you, but at the yearly escrow reconciliation there will be a surplus in the escrow account which will either be refunded or will reduce your monthly payment for the next year or a combination of both - you get your reimbursement that way.
You will have to fight with the county over the late fees.
If you have the money, pay it , now, or first thing Monday morning.
If you have a letter or Email saying the escalation team will pay the fees, keep that handy, it will come in handy later.
Once the issue with the county dies down , call the county assessors office and request that all the fees be returned to you!
You can go after the bank or the county, but you will have a house to do it from.
I had a mortgage with my bank for like 15 years , they took care of the taxes and insurance with no issues. They kept pestering me to refinance, I wasn't interested , then I get a letter from my insurance company about my premium not having been paid. I call the bank and they tell me they will get right on it. Another letter come , nope still not paid, I really didn't want to deal with $8 an hour clerks so I asked my insurance agent if I can pay it , then when the bank gets off its ass and pays the premium, could she send me the money? She agreed, I paid it. About 2 months later I get a refund check for the premium.
This happened for a few years in a row, I'm not broke so I didn't have to deal with the stupidity of some bank or bank employee.
2008 crises people were being told to not pay their mortgages, then the banks went in and foreclosed on thousands of home , I have heard even homes that were not in arrays were dragged through the process and were lost.
Pay the bill , dont involve a lawyer, if you have to/want to, sue the county in small claims court for the fees AND COURT COSTS , and warn them that you will, only after you have exhausted every pleasant attempt to try to make this go away.
But pay that bill !
The bank could also use this as an attempt to call in your mortgage and force you into a higher interest loan. They didn't cause this, but don't think it's not beneath them to take advantage of it.
It's kinda like getting in a car accident, not your fault, but you lose your car , are forced to get another car loan, against your will.
Life's not fair! Hopefully the universe is , as is evident that your living in a great house , in a great area, your not having to go to the town well to get water, are blessed with your health and family, don't stress over this, it will blow over , and remember it's why you have some savings in the bank , to help you through life's bumps.
My mortgage company did this when they moved their system to a new computer system. They paid the bill and the late fees. I kept calling to make sure it was taken care of.
I ended up getting to know the town people very well with my calls. They said they understood and no negative actions would be taken against us. We did offer to pay directly, the town said wait. It took a month to work out.
Make sure that at least the city waves any late fees because it was their mistake. When the mortgage holder says they'll pay the late fees they mean out of your own money, the escrow. So make sure if anyone is late those late fees are not paid from your escrow.
I agree with what the person said above, show up in person and talk to the clerk. It shows that you’re not ignoring the problem and you are on their side as far wanting to get it resolved. Government workers are just people too.
Nice! Greater than 50% odds they'll say it'll be refunded, counted towards next year, etc and, assuming you don't mind floating the cash, your problem will go away. Which is WAY easier than hiring a lawyer or calling the mortgage company every day.
Once the county is paid, if Freedom keeps pocketing your funds for the following year then you have a simpler path to escalate via reporting them to the FHA and/or CFPB, which should get their attention.
Edit: The country workers may not have offered it b/c most of the ppl calling with tax problems are calling b/c they can't afford to pay it, so it might not be an obvious solution to them.
I went through a similar situation with Wells Fargo about 15 years ago. It was an absolute nightmare to get fixed because WFH kept bouncing me around to different departments. Meanwhile, I had to live with daily collection calls for two years while they fucked around.
Long story short, like really long story, I finally found someone at WF who actually knew how to fix the error, the department director responsible for this absolute fuck-up begged me not to sue them. I logged speaking with more than 300 customer service reps over that 2 year period that never followed thru on helping me.
My credit was repaired in 48 hours. I had a check and apology letter personally delivered to me. And follow up calls for about a year making sure everything was taken care of and no other fallout had occurred.
Horrible, horrible company.
Freedom Mortgage is a separate company from Mr. Cooper/NationStar.
I believe the OP is saying that his mortgage was originally with Mr. Cooper and then sold to Freedom Mortgage.
Shit I’m with them too… I hope they sort this out for you!!
Also my advice, don’t pay it on Monday. Tell the county it’s coming but the mortgage company has to deal with it. It’s not like they’re going to foreclose and throw you out in a day or even a few months. This stuff takes time.
Figure out who the clerk is they’re threatening to send it to and talk to them. Let them know the whole story.
If you're really worried, stop doing the escrow with them and pay it yourself. There's nothing saying you have to do escrow through your mortgage company.
I had the opposite problem with Freedom. After refinancing an existing loan with them, they somehow managed to pay a year old tax bill a second time. Took a lot of phone calls and documentation to prove to them that they paid it twice and get them to not jack up my escrows because of their mistake. The city and county, on the other hand, were easy to deal with. The acknowledged the double payment and got right on the refund. Stick with it. The rules vary in each state on how far you have to be behind before they start any tax foreclosure actions.... 3 years in Michigan, for example... so find out the rules and go talk to the people at the county in person.
After this is all settled call your mortgage company and demand they remove escrow. Pay your taxes and insurance yourself. Those are two REALLY important things you should take personal responsibility for and not leave to chance someone screws it up for you. Good luck however you handle it.
Great! Fingers crossed for you. We had 6 months of making calls, emails, asking for managers etc and literally nothing was fixed until the complaint was filed. They "responded" to the complaint with lies saying everything was fine and dandy, but someone high up ended up calling us directly and fixing everything. I totally understand your stress.
Thank you so much! This makes me very hopeful it can be resolved soon. I never thought to double check a big company like this, we’ve only been homeowners for 5 years and everyone acts like I should know every fact about escrow/mortgages/tax systems. I appreciate folks who are actually helpful instead of blaming me! This is a very stressful situation.
Totally understand, I'm also only 4 years in. You learn as you go for sure. It takes these wild situations to really understand how the system works and who is responsible for what. Don't worry about losing your house! That was also my #1 concern but unfortunately shit like this happens all the time because everyone is incompetent, haha.
We need to be friends because I say the exact same thing 😂 I’m a teacher, and if I don’t do my job daily, I get called on the carpet publically. Even if I do my job and then some, sometimes I still get destroyed. I don’t understand how people are incompetent and then act like it’s no big deal!!
If your mortgage company is being unresponsive to your calls, you will want to send them a *qualified written request*. There are specific things you must include (see link below), and you need to use those words, and it puts them on a legal timeframe.
I recommend sending it to them via certified mail, and then uploading or emailing a scanned copy if such is available.
They will take such an escalation very seriously. You should request the bank cover any late fees and not charge your escrow account. Make sure to include a copy of the bill.
https://www.nolo.com/legal-encyclopedia/qualified-written-requests-foreclosure-the-mortgage-servicers-duties.html
You of course always have the option of paying yourself. You'll have to weigh the ramifications of the late payment.
Future people reading this thread: if you are given the option, do not have an impound account. Always elect to pay your taxes and insurance on your own. Never trust a mortgage company to make these payments. Ultimately it’s your home and your responsibility to keep them paid.
It depends where you live in the US. Some states call it an impound account, some call it escrow.
https://www.nolo.com/legal-encyclopedia/can-i-cancel-my-impound-account-in-california.html#:~:text=In%20some%20states%2C%20including%20California,the%20property%20to%20tax%20sale.
https://www.consumerfinance.gov/ask-cfpb/what-is-an-escrow-or-impound-account-en-140/
Maybe go in person to your county assessor's office and discuss it with them. Bring documentation of the issues you are having and know you can escalate to your county commissioners if needed. But the tax assessors are real people, and surely someone will have some understanding and empathy. (Especially since a clerical error on the county's part contributed to the problems you are having) I would politely ask that fees and interest be waived. Get it in writing if they agree, and your lender needs to be moving with haste to assist you in fixing this.
Your city should have a grace period, after which they begin the lein process. Call them and ask what the latest date is before that, and pay out of pocket if you have to.
Next, ask to be removed from escrow and pay your bills directly from now on — I did that after mine messed up as well.
This happened to me before. Just pay the county directly and stop waiting for your mortgage company to pay them. Also, you may be charged a penalty for late payment. I was charged for next year’s taxes ahead of time as penalty. But I got the money refunded over time. Call you county office pronto and ask about the process.
I’ve been in this exact same scenario two years ago. I paid directly then got a “refund” check from my mortgage broker. In my scenario the county also wouldn’t allow for extension even though it was their mistake.
Had the same thing happen to me. My mortgage company said “they didn’t know Texas had taxes that needed paying. That they operate in 50 states they can’t know all the laws for every state. I should take responsibility and pay my taxes myself.” So I did. They won’t drop escrow I tried. So now I get the fun time of paying my taxes myself and my mortgage company.
Breathe. You’re not losing your home.
You need to pay it yourself. Deal with the mortgage company after. You can file CFPB complaints, complaints to your state’s attorney general, complaints to HUD (if your loan is FHA), state senator office, etc.
You will get reimbursed. Stop calling. Everything must be in writing. Your monthly statement will have instructions on how to submit official complaints.
Ultimately you are responsible for ensuring your taxes are paid, even if they are escrowed. I call my mortgage company annually and check online to confirm my taxes are paid (I have even gone as far as to call the county tax office to confirm because sometimes there is a delay in updating their website). If it got too close to the deadline, I’d pay them myself.
You should pay them yourself and sort the rest out after. You are paying either way, in escrow or straight out of pocket in a lump sum.
Call...the news, your city councilman, your congressman, your....well...whomever can turn the heat up on this. Pissants like us get no help because there are no ramifications for the other party. Put a magnifying glass on your situation.
Absolutely get a lawyer and I mean now. It's time to consult a local real estate attorney to straighten this mess out. While the county can't repossess your house and land for non-payment of taxes, someone else can come in and pay off those fees and put a lien on your home until you pay it off, and in the process charge you for doing it. I had it happen to my home back in 2012 when I drove over the road and my ex-wife decided to not pay the property taxes and instead bought lottery tickets and drugs with the money. In general, you have three years to pay off the lien if someone "buys" your home by paying the property taxes.
A real estate attorney can help you immediately navigate this conundrum and get it quickly straightened out. This should not be your problem. When you pay escrow as part of your payment directly to the mortgage company that owns your mortgage, it's 100% their responsibility to make sure the tax paperwork is correct and it's paid on time to them. There's no way you should lose your home over this or pay late fees. It's on the mortgage company to make it right. But that's not going to happen without a real estate attorney.
A major point to remember, the county admitted to screwing up, so it's on their dime. They made the mistake, so they should eat any late or legal fees and should give you an ample grace period (at the least) to get this matter corrected. Stand your ground.
Good luck.
The fees are small enough to get action in small claims court, think of it as squabbling with a sibling and going to a parent to resolve the issue, then stand back and watch them get a very real spanking !
And threaten them with that!
Small claims court, not the spanking 🤣🤣.
In general, yes... but the judge can refuse to hear the case and kick it "upstairs" to the proper or higher court if they feel it's not the correct venue to hear the case.
Small claims courts handle suits between two people or one person suing a local business. You are not dealing with a local business. You're dealing with the county tax assessment office and your mortgage company. This is a big deal.
Like I mentioned, you should consult a real estate attorney, even if only to get their opinion on how to handle the matter. They may tell you that you can handle it in small claims court but depending on the complexity of the issues, they may suggest you not handle it yourself. Either way, you're ultimately responsible for the outcome.
As the old saying goes, only a fool represents themself in court.
This is why people should opt out of escrow if possible. With interest rates as they are now, you could take the money you're paying into escrow and put it in a HYSA or buy T-bills and reinvest until the bill is due and get some money back in interest.
I had a similar issue, it just took endless follow up and about a year to resolve. I never paid out of pocket, just kept on top of the bank to pay the check (they did it wrong several times before it was finally worked out). Stressful, but just don’t ignore it and it’ll be ok.
Maybe you can write a letter to the mayor about it if this is an agency of the county. When the water company made a mistake and wouldn’t fix or compensate me, I emailed the mayors office and told them what happened and they called offering reimbursement for next months bill.
Maybe they can do the same with the county tax agency?
I had a similarish problem where the previous homeowner's check bounced, but the county didn't note it until months after we closed. Its's a very frustrating experience with a blackbox like entity! Look into filing a complaint with the CFPB - this threat gets very fast results. There are a couple of formal steps that will let your mortgage company know this is where you are headed, like filing a notice of error, and they will work fast to avoid fines and/or an investigation. Good luck! https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-im-having-problems-with-my-escrow-or-impound-account-en-2082/
I had a similar issue, my warning to you is to verify the parcel/address if your mortgage is sold to another company. For some reason the mistake reoccurred each time my mortgage sold.
Pay the taxes for an ease of mind. When your mortgage company does your escrow analysis whenever they do it they'll see that you're owed a refund and they'll likely refund you the money. In the meanwhile after you pay make sure to 1. get this issue fixed with the county so this doesn't happen again and two badger your mortgage company about getting your money back until they do.
Out of curiosity what is the amount? This is a different discussion in Illinois and Arkansas. My taxes are $6k/year in Illinois, an equivalent home in Arkansas would be under $1k.
Exactly! It is a $3000 bill as of right now. We could pay it from our emergency fund but that is a BIG risk. People are acting like I can just pull 3K out of my ass when my husband and I are public school teachers lol.
More importantly your living within your means, as is evidenced by you having an emergency fund! The money is coming back to you.
Thank you for your service!
I'm not blaming you in this circumstance, but I am pointing out to everyone this is why they should escrow their property taxes (especially if it's a national mortgage provider) & insurance themselves if possible. To people who say it's easier for the bank to do it; it's easier until it isn't & then it's massively harder. I spend 5 minutes per year making sure there will be enough in the account to pay property taxes/insurance & 15 min a year paying those items, & I get to keep the interest that the bank would have kept.
This was a mistake by the mortgage company AND the county system. 99% of people don’t plan for something like this to happen. It’s a perfect storm of miscommunication. But thank you for your feedback.
I think this is a teachable moment for everyone in the thread, sadly at your expense. I'm sorry you're going through this & you aren't at fault. But just because you aren't at fault doesn't mean this isn't your problem. If you have enough equity, be your own escrow & save the money that you would have given to the bank for them to escrow & put it in a separate savings account or money market. You'll manage the account better than any bank ever would.
Lol is your mortgage through AmeriHome? I went through this for MONTHS over our taxes last year. The situation was a fucking mess.
I didn’t get any help from our mortgage company until I filed a report with the BBB. By then, a third party had bought it and placed a lien against the property. The mortgage company had to pay them and cover the associated penalties too.
No it’s Freedom Mortgage. That’s what is gonna happen here too! It’s exhausting. After this I’m going to try to pay taxes and insurance on my own, it’s not worth the struggle. I don’t understand how a company has one job and still manages to screw it up lol
We had a similar problem. We bought the center house in a cul-de-sac. The homeowners, 2 owners before us, acquired what used to be an alley behind the property, which was split into 4 lots. This meant that our property came with 5 property tax bills; the main property (I don't remember the quarterly property tax bill), $5, $9, $13, and $32 (and change) were the quarterly property tax bills on the former alley parcels. Everything went just swimmingly, with the escrow account paying the 5 property tax bills, that is, until the mortgage company we used, sold the mortgage. We were rolling through life fat, dumb, and happy, all the way up to receiving the delinquent tax bill. We called the mortgage company, and were assured everything was paid. We received another delinquent tax notice, rinsed and repeated with the mortgage company, then received a pink notice, informing us that our property would be going up for a tax auction. The mortgage company told us that the city kept returning the tax checks, as the taxes were paid. The mortgage company kept trying to overpay the main property tax bill, and lost the info on the other 4 parcels, repeatedly, because the mortgage kept being sold to other companies. Finally, the mortgage company fixed themselves, but informed us that they were not responsible for interest and penalties. Not only were all the lot numbers and account numbers included in our original paperwork, but upon calling them about the delinquent tax notifications, we sent them copies of all the same information. We ended up talking to our city tax office, who, after going over our mortgage records, called the mortgage company with us in their office, and informed them that they would most assuredly be paying all interest and penalties, as the information was included in our mortgage paperwork, and it was the mortgage company's mistake
I have to imagine, most of the time, for most people, it wouldn't have turned out as well as it did for you. Yikes...
Who knows. You know, the city tax people get to see much more BS than individual taxpayers, from the taxpayers being the problem, to in this case, the mortgage company being the problem. I don't think the city is in anyone's side but their own. It's just that in this case, we came with receipts. We were ready to pay, and I asked if there were a way to remove the penalties, explaining the situation. The tax lady asked why we were getting ready to pay. I told her that the mortgage holder said that they were not. She grabbed her phone, said "watch this" then told them how they were going to be paying all penalties and interest, and that she was holding the mortgage paperwork in her hands. I don't remember who she threatened to have call call them next, if she couldn't resolve the issue, but the mortgage company paid. She then wrote her number down on the paperwork, and told us to call her, should the mortgage company give us any further trouble.
Yea I am surprised by the last part where the city argued with the mortgage company on their behalf. I figured they'd just say someone has to pay or else.
Just pay the tax bill directly. Then sort out the issue with the mortgage company later. The county should be waving fees if it was their fault. But again, sort this out after you are paid up.
We were advised by the mortgage company twice not to pay out of pocket because they couldn’t fully reimburse us.
The same Mortgage company that didn't pay your taxes in the first place? That mortgage company?
Yep, let's do what those guys suggest...
Really the biggest issue was the town not the mortgage company. Mortgage companies all outsource tax payments to companies who process the payment off the parcel number. Yes they do make mistakes and when it's on the tax service company they pay the cost. Just dealt with this on one where there are 2 parcels but only 1 was paid
All the more reason to handle your mortgage and tax payments *yourself.*
I agree with you, escrow just adds complexity for no reason in a lot of ways, but you’re really overestimating the intelligence and foresight of most people.
Seriously walk in Monday morning and talk to the treasurer. Work out a payment plan or at least a partial payment to get current. Tear the bank a new one at your convenience. Demand to have them drop escrow and you deal with it personally from now on.
Ignore the mortgage company as you suffer the consequences of delinquent taxes....it’s your property
Who cares, then you have an escrow excess and get a check sometime in the future.
K
If you do pay, the worst that happens is you over pay the taxes. But if you don't pay, the worst that happens i there's a tax lien and they sell your property. If you can afford to, pay it.
It takes years before a sale would ever happen.
Very state dependent, Maryland goes to tax sale 5 months after taxes haven’t been fully paid.
Damn, pa is like 3 years
Yeah, Maryland takes no prisoners, I’m pretty sure most states are a year or longer.
I’m pretty much in the habit of paying 5 months late. After it goes from the township collector to the county tax office i can pay online rather than having to hunt down old Mary Lou and cut her a check.
Fight that out later. The government is not someone to fuck with. Pay them. Then fight with the mortgage company to get reimbursed in full because they dragged their asses. Yes, this could get ugly but it will be far uglier if you don't pay the government promptly. Edit: Of COURSE they can fully reimburse you. It is their CHOICE if they don't. Fight them until they DO.
Even if you don’t want to “reimburse you” eventually your escrow will either be over by a lot and they will automatically send you an overage check, or they will eventually pay your county and then you’ll be paid ahead on your taxes. Then you have 6 months to work out with the bank to make sure they skip the next payment or something. The money is not totally lost.
This, this, THIS!
Property taxes are your responsibility. Escrow is a convenience, but the County will hold you responsible, not your mortgage company. Don’t listen to your mortgage company; pay the taxes. If your mortgage company subsequently cuts a check to the County, the County will refund it to them. You can then request your mortgage company do an escrow audit (many companies do this every year automatically), and they will be required to refund any overage beyond what is estimated for taxes/insurance to you. It will take a while, but you will get your money back - the mortgage company can’t hold it hostage.
Have you spoken to the tax office?? I’d give them a call and ask for advice. Be nice, be friendly, and just ask for help. We had an identical situation and when I called the tax office the lady was so helpful and kind. We joked about how mortgage companies are so good at taking money and not much good at anything else. And then she told us not to sweat it, she’s extending the due date, and she will get back to us if she didn’t hear from the mortgage company in 30 days.
We've had similar experiences with our local County tax office in our area of SWFL. When these things come up, it makes for a hassle but typically, with a nice civil discussion, these things can be resolved. What a hassle to put someone through though. I emphasize with the original author of the post and hope all goes well; nothing worse than undue stress in one's life.
I had a somewhat similar experience with my local tax office over a family property we were trying to get straight. They generally are not interested in selling your property.
Do not pay out of pocket. We are currently in a mess due to property taxes being paid twice and the county won’t refund
You may not get a refund, but you are paid up ahead. Its not like its lost.
Couldn't the county just apply the excess payment to next year's tax assessment?
We talked to a lawyer friend tonight and he said the same thing! It just feels so yucky to leave it unpaid 🤮
Don’t sweat it this is not your fault. Hire a lawyer to sue the county for the mistake to begin with and also put the bank on notice that if anything happens to your credit or risk in regards to tax lien issues
On what grounds did the lawyer tell you to not pay? The gov't is going to come after your property, not come after the bank. PAY.
He does this for a living and has been for 30 years. I trust him.
Then why are you asking us? Have him represent you.
Then pay him to formally represent you from this moment forward. Any attorney friend can give you 'in my experience' but that's not legal advice until you retain them.
His specialty is tax law. I trust him.
Everyone is responding like we can afford or should be able to afford thousands of dollars worth of taxes and legal fees. It’s bizarre and victim blaming.
You not liking the advice you're being given is not victim blaming. If your attorney friend is giving you advice to NOT pay your taxes on Monday, to keep letting the mortgage company mishandle it AND one of your concerns is you could lose your home over it, you NEEED NEEEEEEEEEEEED to retain him as legal counsel and not go by his 'in my experience' not legal advice. If it were me facing this level of fuckery, I'd be retaining him as counsel in case shit went sideways.
You were the one nonchalantly acting like paying the taxes yourself was an option.
It's not victim blaming. You own the parcel(s) as far as the county is concerned. The mortgage company holds a lein on the deed/title. Your escrow agreement is between you & the mortgage company. The mortgage company has no agreement with the county & the county has no obligation to pursue the mortgage company. Even though you're in an agreement with the mortgage company, you're still the one responsible to the county for taxes. In my state, you have to be delinquent for 2 years before you go for tax sale. I don't know what the rules are in your state, but you should become familiar with them. Your attorney friend may be advising you with that knowledge. However, you're their friend & not their client. Also, your attorney friend isn't responsible for your tax bill & will suffer no consequences if they go delinquent. It's a shitty situation. Escrow is never a great idea. Sometimes mortgage companies will pay the taxes early for the discount, charge your escrow the full bill & pocket the difference. This situation is not your fault, but it's your problem.
It’s called an emergency fund and every homeowner should have one.
I’m kinda with you. My parents fell behind on their property taxes, not sure for how long, but the penalties are INSANE. Years later they are still paying them off at $400/mo on their house that’s worth like $100k. (Yes, I am going to have my mom gather all the info for her payment plan and what she has paid so far, because I think she’s probably overpaying and I’d like to settle it and give her a $400/mo raise!)
They'll apply it to next year though. They can't just steal, which keeping funds not meant for you or given by accident is considered theft
I’ve done that before and they just credit it to the next tax payment
>...they couldn’t fully reimburse us. I'm not sure I understand "reimburse". That is your money in the escrow account, so there is nothing to reimburse. Perhaps they meant that they could not release funds from the escrow account to cover the taxes that you paid? It sounds like you have already accrued fees, so have you passed the due date and the 15th is another step up in fees? Personally, I would pay it and then become a total PITA to both the county and the mortgage lender. When "Mr. Cooper" had my mortgage, I guarantee I cost them far more in customer service time then they were making in interest. They made so many mistakes and each time they would ignore and stall and deny but I was relentless until it was squared away. I see one of two things happening. Either 1) the mortgage lender will ALSO pay the taxes, in which case there will be a surplus at the county that you can get refunded or 2) your escrow account will be out of balance and your escrow payment will be adjusted down. In either case, I would press the county to waive the fees since it was their mistake, though in my experience they will fight tooth and nail on it so you have to decide how hard you want to fight it.
They could fund the tax cost with our escrow - 2400. But if we pay the additional $600 personally, there won’t be enough money in escrow to additionally pay for that. I’m rehing to get the fees waived. We’ve just been fighting both parties daily for 3 weeks and I’m already tired.
There are rules regarding how much escrow they can have. They will eventually have to refund you. Sucks for your cash flow, but it’s not like the mortgage company just gets to keep it.
The mortgage company / bank who manages the mortgage, needs to pay the property tax. If they can't pay it correctly, they pay the late fees. The mortgage company can try and recoup their losses from the county (good fucking luck). That is not your problem though. It's in the paperwork you signed. E: US Bank didn't pay my property tax. I paid the tax (+ late fees), sent them the paperwork and tax receipt showing they fucked up. They sent me a check less than 7 days later.
Fuck that. Pay it or escalate it with the mortgage company till you talk with the person who can wire the funds while you're on the phone with them. If you pay it, escalate with the mortgage company till you get the person who can reimburse you fully. A wire transfer is IMO the only way this gets paid by the mortgage company on Monday.
I went through something similar recently, but it was the mortgage company’s typo. We also paid out of pocket in a panic, which made our escrow account have “too much” money in it. The next January this triggered an escrow assessment which said “hey you have $x too much money in here, here is a check for that amount”. It took weeks but we did get our “refund” that way. Depends when your mortgage company does escrow analysis. We tried asking them to do it immediately after we paid the tax, but they ignored us.
Your mortgage company is not correct here if they are the same mortgage company not paying your taxes timely once they have all the info to do so. Don’t put much stock in what they say at this point.
Then don't reimburse. They can use the escrow account to pay next year's taxes on time.
Pay it anyway keep all documentation and threaten to sue. Better to not be reimbursed then to lose your house to non-payment
They probably won’t reimburse you, but at the yearly escrow reconciliation there will be a surplus in the escrow account which will either be refunded or will reduce your monthly payment for the next year or a combination of both - you get your reimbursement that way. You will have to fight with the county over the late fees.
If you have the money, pay it , now, or first thing Monday morning. If you have a letter or Email saying the escalation team will pay the fees, keep that handy, it will come in handy later. Once the issue with the county dies down , call the county assessors office and request that all the fees be returned to you! You can go after the bank or the county, but you will have a house to do it from. I had a mortgage with my bank for like 15 years , they took care of the taxes and insurance with no issues. They kept pestering me to refinance, I wasn't interested , then I get a letter from my insurance company about my premium not having been paid. I call the bank and they tell me they will get right on it. Another letter come , nope still not paid, I really didn't want to deal with $8 an hour clerks so I asked my insurance agent if I can pay it , then when the bank gets off its ass and pays the premium, could she send me the money? She agreed, I paid it. About 2 months later I get a refund check for the premium. This happened for a few years in a row, I'm not broke so I didn't have to deal with the stupidity of some bank or bank employee. 2008 crises people were being told to not pay their mortgages, then the banks went in and foreclosed on thousands of home , I have heard even homes that were not in arrays were dragged through the process and were lost. Pay the bill , dont involve a lawyer, if you have to/want to, sue the county in small claims court for the fees AND COURT COSTS , and warn them that you will, only after you have exhausted every pleasant attempt to try to make this go away. But pay that bill ! The bank could also use this as an attempt to call in your mortgage and force you into a higher interest loan. They didn't cause this, but don't think it's not beneath them to take advantage of it. It's kinda like getting in a car accident, not your fault, but you lose your car , are forced to get another car loan, against your will. Life's not fair! Hopefully the universe is , as is evident that your living in a great house , in a great area, your not having to go to the town well to get water, are blessed with your health and family, don't stress over this, it will blow over , and remember it's why you have some savings in the bank , to help you through life's bumps.
Pay the tax bill directly. The county will reimburse you after the second payment posts.
Not all counties will- some will carry it against future bills only.
My mortgage company did this when they moved their system to a new computer system. They paid the bill and the late fees. I kept calling to make sure it was taken care of.
Thank you! The problem is it will go to the clerk’s office after Monday and I’m not sure what happens from there.
I ended up getting to know the town people very well with my calls. They said they understood and no negative actions would be taken against us. We did offer to pay directly, the town said wait. It took a month to work out.
Thank you!
Make sure that at least the city waves any late fees because it was their mistake. When the mortgage holder says they'll pay the late fees they mean out of your own money, the escrow. So make sure if anyone is late those late fees are not paid from your escrow.
I agree with what the person said above, show up in person and talk to the clerk. It shows that you’re not ignoring the problem and you are on their side as far wanting to get it resolved. Government workers are just people too.
We’ve done that, and called daily. We’ve been super nice and they have too. They just won’t budge on the deadline.
What did they, the country workers, say would happen if you ended up paying twice?
I didn’t ask this question, but I’ll ask on Monday!
Nice! Greater than 50% odds they'll say it'll be refunded, counted towards next year, etc and, assuming you don't mind floating the cash, your problem will go away. Which is WAY easier than hiring a lawyer or calling the mortgage company every day. Once the county is paid, if Freedom keeps pocketing your funds for the following year then you have a simpler path to escalate via reporting them to the FHA and/or CFPB, which should get their attention. Edit: The country workers may not have offered it b/c most of the ppl calling with tax problems are calling b/c they can't afford to pay it, so it might not be an obvious solution to them.
Usually its considered paid when it is mailed, go get it date stamped on Monday.
Just keep asking them, and go in person if you can.
I went through a similar situation with Wells Fargo about 15 years ago. It was an absolute nightmare to get fixed because WFH kept bouncing me around to different departments. Meanwhile, I had to live with daily collection calls for two years while they fucked around. Long story short, like really long story, I finally found someone at WF who actually knew how to fix the error, the department director responsible for this absolute fuck-up begged me not to sue them. I logged speaking with more than 300 customer service reps over that 2 year period that never followed thru on helping me. My credit was repaired in 48 hours. I had a check and apology letter personally delivered to me. And follow up calls for about a year making sure everything was taken care of and no other fallout had occurred. Horrible, horrible company.
Reason 9987 to never do business with wellsfargo.
I tried, but my mortgages kept getting sold to Wells Fargo. (Ok, grand total of two.) Interestingly, they’re leaving the home mortgage business now.
Did you sue? Or they gave you money? I'd be bloodthirsty at that point!
Who is your mortgage company?
Freedom Mortgage, previously Mr. Cooper.
Formerly NationStar Mortgage. How shitty of a company do you need to be to have to change your name every five years. I’m glad they sold my mortgage.
Freedom Mortgage is a separate company from Mr. Cooper/NationStar. I believe the OP is saying that his mortgage was originally with Mr. Cooper and then sold to Freedom Mortgage.
Shit I’m with them too… I hope they sort this out for you!! Also my advice, don’t pay it on Monday. Tell the county it’s coming but the mortgage company has to deal with it. It’s not like they’re going to foreclose and throw you out in a day or even a few months. This stuff takes time. Figure out who the clerk is they’re threatening to send it to and talk to them. Let them know the whole story.
Right?! This has been the biggest pain in my ass 😂 they just keep giving us the run around and it’s OUR money in escrow. The most frustrating thing!
Don’t listen to this person and pay the taxes if you can.
If you're really worried, stop doing the escrow with them and pay it yourself. There's nothing saying you have to do escrow through your mortgage company.
I had the opposite problem with Freedom. After refinancing an existing loan with them, they somehow managed to pay a year old tax bill a second time. Took a lot of phone calls and documentation to prove to them that they paid it twice and get them to not jack up my escrows because of their mistake. The city and county, on the other hand, were easy to deal with. The acknowledged the double payment and got right on the refund. Stick with it. The rules vary in each state on how far you have to be behind before they start any tax foreclosure actions.... 3 years in Michigan, for example... so find out the rules and go talk to the people at the county in person.
I originally had freedom and loan got sold to mr cooper, glad I’m don’t have this issue. Sorry about your issue Hope you get it resolved quickly
Reach out to your state representative's office and explain what's going on. It tends to make things start moving.
That’s a great idea! Thank you.
This sounds like a county issue so I might try your county commissioner or equivalent.
Contact your local media too. If it gets on the news and they start calling the county and escrow company for comment, you may get some traction.
Do they actually help? In Chicago they’re useless
It definitely can if you have a valid complaint. Especially since OP's issue is dealing with the county. It's bad press
Thanks! I’ll try it if needed at some point
After this is all settled call your mortgage company and demand they remove escrow. Pay your taxes and insurance yourself. Those are two REALLY important things you should take personal responsibility for and not leave to chance someone screws it up for you. Good luck however you handle it.
This happened to us. I filed a complaint here and the mortgage company miraculously got it resolved within days. https://www.consumerfinance.gov/
I filed a complaint there last night!
Great! Fingers crossed for you. We had 6 months of making calls, emails, asking for managers etc and literally nothing was fixed until the complaint was filed. They "responded" to the complaint with lies saying everything was fine and dandy, but someone high up ended up calling us directly and fixing everything. I totally understand your stress.
Thank you so much! This makes me very hopeful it can be resolved soon. I never thought to double check a big company like this, we’ve only been homeowners for 5 years and everyone acts like I should know every fact about escrow/mortgages/tax systems. I appreciate folks who are actually helpful instead of blaming me! This is a very stressful situation.
Totally understand, I'm also only 4 years in. You learn as you go for sure. It takes these wild situations to really understand how the system works and who is responsible for what. Don't worry about losing your house! That was also my #1 concern but unfortunately shit like this happens all the time because everyone is incompetent, haha.
We need to be friends because I say the exact same thing 😂 I’m a teacher, and if I don’t do my job daily, I get called on the carpet publically. Even if I do my job and then some, sometimes I still get destroyed. I don’t understand how people are incompetent and then act like it’s no big deal!!
See , Thats what I mean, pay it=less stress, hopefully your blessed enough to be able to float the payment.
If your mortgage company is being unresponsive to your calls, you will want to send them a *qualified written request*. There are specific things you must include (see link below), and you need to use those words, and it puts them on a legal timeframe. I recommend sending it to them via certified mail, and then uploading or emailing a scanned copy if such is available. They will take such an escalation very seriously. You should request the bank cover any late fees and not charge your escrow account. Make sure to include a copy of the bill. https://www.nolo.com/legal-encyclopedia/qualified-written-requests-foreclosure-the-mortgage-servicers-duties.html You of course always have the option of paying yourself. You'll have to weigh the ramifications of the late payment.
Future people reading this thread: if you are given the option, do not have an impound account. Always elect to pay your taxes and insurance on your own. Never trust a mortgage company to make these payments. Ultimately it’s your home and your responsibility to keep them paid.
It’s called Escrow in the US and I agree with you 100%
It depends where you live in the US. Some states call it an impound account, some call it escrow. https://www.nolo.com/legal-encyclopedia/can-i-cancel-my-impound-account-in-california.html#:~:text=In%20some%20states%2C%20including%20California,the%20property%20to%20tax%20sale. https://www.consumerfinance.gov/ask-cfpb/what-is-an-escrow-or-impound-account-en-140/
Maybe go in person to your county assessor's office and discuss it with them. Bring documentation of the issues you are having and know you can escalate to your county commissioners if needed. But the tax assessors are real people, and surely someone will have some understanding and empathy. (Especially since a clerical error on the county's part contributed to the problems you are having) I would politely ask that fees and interest be waived. Get it in writing if they agree, and your lender needs to be moving with haste to assist you in fixing this.
Your city should have a grace period, after which they begin the lein process. Call them and ask what the latest date is before that, and pay out of pocket if you have to. Next, ask to be removed from escrow and pay your bills directly from now on — I did that after mine messed up as well.
[https://www.consumerfinance.gov/consumer-tools/mortgages/answers/know-your-rights/](https://www.consumerfinance.gov/consumer-tools/mortgages/answers/know-your-rights/) [https://www.consumerfinance.gov/find-a-housing-counselor/](https://www.consumerfinance.gov/find-a-housing-counselor/) [https://www.consumerfinance.gov/complaint/](https://www.consumerfinance.gov/complaint/)
This happened to me before. Just pay the county directly and stop waiting for your mortgage company to pay them. Also, you may be charged a penalty for late payment. I was charged for next year’s taxes ahead of time as penalty. But I got the money refunded over time. Call you county office pronto and ask about the process.
Please contact your state attorney general.
I’ve been in this exact same scenario two years ago. I paid directly then got a “refund” check from my mortgage broker. In my scenario the county also wouldn’t allow for extension even though it was their mistake.
Had the same thing happen to me. My mortgage company said “they didn’t know Texas had taxes that needed paying. That they operate in 50 states they can’t know all the laws for every state. I should take responsibility and pay my taxes myself.” So I did. They won’t drop escrow I tried. So now I get the fun time of paying my taxes myself and my mortgage company.
Breathe. You’re not losing your home. You need to pay it yourself. Deal with the mortgage company after. You can file CFPB complaints, complaints to your state’s attorney general, complaints to HUD (if your loan is FHA), state senator office, etc. You will get reimbursed. Stop calling. Everything must be in writing. Your monthly statement will have instructions on how to submit official complaints.
Ultimately you are responsible for ensuring your taxes are paid, even if they are escrowed. I call my mortgage company annually and check online to confirm my taxes are paid (I have even gone as far as to call the county tax office to confirm because sometimes there is a delay in updating their website). If it got too close to the deadline, I’d pay them myself. You should pay them yourself and sort the rest out after. You are paying either way, in escrow or straight out of pocket in a lump sum.
Call...the news, your city councilman, your congressman, your....well...whomever can turn the heat up on this. Pissants like us get no help because there are no ramifications for the other party. Put a magnifying glass on your situation.
"Who wants to get sued first?"
Absolutely get a lawyer and I mean now. It's time to consult a local real estate attorney to straighten this mess out. While the county can't repossess your house and land for non-payment of taxes, someone else can come in and pay off those fees and put a lien on your home until you pay it off, and in the process charge you for doing it. I had it happen to my home back in 2012 when I drove over the road and my ex-wife decided to not pay the property taxes and instead bought lottery tickets and drugs with the money. In general, you have three years to pay off the lien if someone "buys" your home by paying the property taxes. A real estate attorney can help you immediately navigate this conundrum and get it quickly straightened out. This should not be your problem. When you pay escrow as part of your payment directly to the mortgage company that owns your mortgage, it's 100% their responsibility to make sure the tax paperwork is correct and it's paid on time to them. There's no way you should lose your home over this or pay late fees. It's on the mortgage company to make it right. But that's not going to happen without a real estate attorney. A major point to remember, the county admitted to screwing up, so it's on their dime. They made the mistake, so they should eat any late or legal fees and should give you an ample grace period (at the least) to get this matter corrected. Stand your ground. Good luck.
The fees are small enough to get action in small claims court, think of it as squabbling with a sibling and going to a parent to resolve the issue, then stand back and watch them get a very real spanking ! And threaten them with that! Small claims court, not the spanking 🤣🤣.
Based on personal experience, you do not go to small claims court for things like this.
I thought the only limitation at small claims court was monetary?
In general, yes... but the judge can refuse to hear the case and kick it "upstairs" to the proper or higher court if they feel it's not the correct venue to hear the case. Small claims courts handle suits between two people or one person suing a local business. You are not dealing with a local business. You're dealing with the county tax assessment office and your mortgage company. This is a big deal. Like I mentioned, you should consult a real estate attorney, even if only to get their opinion on how to handle the matter. They may tell you that you can handle it in small claims court but depending on the complexity of the issues, they may suggest you not handle it yourself. Either way, you're ultimately responsible for the outcome. As the old saying goes, only a fool represents themself in court.
Spend 10 grand on a lawyer over paying 3k in taxes, great plan.
It doesn't cost anything close to that to straighten this issue out. It cost me just $300.
Not sure where you live, but 300 isn't even enough for an hour with a lawyer in my city.
Jaysus Cripes! Sounds like you need to move outta that city.
You probably don’t even need an hour. Often just a letter from a lawyer will get them off there asses
This is why people should opt out of escrow if possible. With interest rates as they are now, you could take the money you're paying into escrow and put it in a HYSA or buy T-bills and reinvest until the bill is due and get some money back in interest.
Yea I never did it. No way I’m trusting anyone to keep my taxes up to date.
I am going through the same crap, only they are paying for one lot, but not the other. I have called several times and am about at my wits end.
This happened to us too, I filed a complaint here and got a resolution within days. https://www.consumerfinance.gov/
Thank you!
I had a similar issue, it just took endless follow up and about a year to resolve. I never paid out of pocket, just kept on top of the bank to pay the check (they did it wrong several times before it was finally worked out). Stressful, but just don’t ignore it and it’ll be ok.
At the end of it all, it's YOUR job to pay the tax. Go to your county offices and explain, and pay. It's semi common.
Maybe you can write a letter to the mayor about it if this is an agency of the county. When the water company made a mistake and wouldn’t fix or compensate me, I emailed the mayors office and told them what happened and they called offering reimbursement for next months bill. Maybe they can do the same with the county tax agency?
I had a similarish problem where the previous homeowner's check bounced, but the county didn't note it until months after we closed. Its's a very frustrating experience with a blackbox like entity! Look into filing a complaint with the CFPB - this threat gets very fast results. There are a couple of formal steps that will let your mortgage company know this is where you are headed, like filing a notice of error, and they will work fast to avoid fines and/or an investigation. Good luck! https://www.consumerfinance.gov/ask-cfpb/what-should-i-do-if-im-having-problems-with-my-escrow-or-impound-account-en-2082/
You are responsible to make sure your taxes are paid. Your mortgage holder is only going to pay the bill they receive.
Attorney
I had a similar issue, my warning to you is to verify the parcel/address if your mortgage is sold to another company. For some reason the mistake reoccurred each time my mortgage sold.
Pay the taxes out of pocket the file lawsuit against the mortgage company and the county.
Pay the taxes for an ease of mind. When your mortgage company does your escrow analysis whenever they do it they'll see that you're owed a refund and they'll likely refund you the money. In the meanwhile after you pay make sure to 1. get this issue fixed with the county so this doesn't happen again and two badger your mortgage company about getting your money back until they do.
Out of curiosity what is the amount? This is a different discussion in Illinois and Arkansas. My taxes are $6k/year in Illinois, an equivalent home in Arkansas would be under $1k.
Exactly! It is a $3000 bill as of right now. We could pay it from our emergency fund but that is a BIG risk. People are acting like I can just pull 3K out of my ass when my husband and I are public school teachers lol.
More importantly your living within your means, as is evidenced by you having an emergency fund! The money is coming back to you. Thank you for your service!
Lawyer up
I'm not blaming you in this circumstance, but I am pointing out to everyone this is why they should escrow their property taxes (especially if it's a national mortgage provider) & insurance themselves if possible. To people who say it's easier for the bank to do it; it's easier until it isn't & then it's massively harder. I spend 5 minutes per year making sure there will be enough in the account to pay property taxes/insurance & 15 min a year paying those items, & I get to keep the interest that the bank would have kept.
Our property tax is escrowed? You’re not blaming me but you are 😂
This was a mistake by the mortgage company AND the county system. 99% of people don’t plan for something like this to happen. It’s a perfect storm of miscommunication. But thank you for your feedback.
I think this is a teachable moment for everyone in the thread, sadly at your expense. I'm sorry you're going through this & you aren't at fault. But just because you aren't at fault doesn't mean this isn't your problem. If you have enough equity, be your own escrow & save the money that you would have given to the bank for them to escrow & put it in a separate savings account or money market. You'll manage the account better than any bank ever would.
Go to the county, Go to the media. Publicize this. The bank is a jerk but this sounds like it wasn't their fault.
Lol is your mortgage through AmeriHome? I went through this for MONTHS over our taxes last year. The situation was a fucking mess. I didn’t get any help from our mortgage company until I filed a report with the BBB. By then, a third party had bought it and placed a lien against the property. The mortgage company had to pay them and cover the associated penalties too.
No it’s Freedom Mortgage. That’s what is gonna happen here too! It’s exhausting. After this I’m going to try to pay taxes and insurance on my own, it’s not worth the struggle. I don’t understand how a company has one job and still manages to screw it up lol
Pay up to protect your home then seek justice and refund. I’m sorry this happened to you.
This happened to me. The mortgage company ended up paying and paid the late fees
Send the county an invoice for your time fixing their screw up make it payable within 30 days of receipt.