Backstory: I was with Countrywide originally and in April 2009 BOA took over my homeloan. I went to closing on Dec 21, 2007 and prepaid for one year projected taxes and insurance into my escrow at closing as well as paying for my homeowners insurance in full for the current year and the 10 days of taxes that were due for 2007. By prepaying my escrow account at closing I had a $500 buffer and $5380 in prepaid fees. Throughtout my time with Countrywide I kept a positive balance in my Escrow account even after the 1st year ended and my insurance and taxes were paid leaving my $500 buffer still intact and an additional $181 that was overpaid towards insurance.
Fast forward to April 2009 when BOA takes over my Countrywide loan and all of a sudden my Escrow is negative by $1194, due to the company adding a homeowners policy that covers wind/hail and hurricane. When I sent BOA a copy of my current homeowners insurance stating that on my declaration page it cleary showed a hurricane deductible and the coverages as well as wind/hail coverages and that I refused to pay for a 2nd policy. I spoke to a very rude CS rep who told me they would do an evaluation of my escrow account and insurance and determine if the 2nd policy was actually needed. After a month it was still showing up in my escrow statement and I had my insurance guy call BOA while I sat in his office and he explained in my policy I was 100% covered for wind/hail and hurricane. BOA finally removed the insurance coverage.
By June of 2009, I still had a negative balance in my Escrow account. When I questioned this I was told by a supervisor that the new negative balance was from them paying my property taxes. I asked them for a copy of the tax bill as the Tax Assesors office claimed the bill would not be sent till December. He refused to allow me a copy of this and I asked to have an itemized Escrow statement sent to me showing what was paid, when, and how much. After repeated calls for days I got another supervisor who told me there was no shortage that they would be crediting my account from the insurance policy that was cancelled but I would have to pay for the 1.5 months that it was in effect. When I refused stating it was their choice and their error in adding the policy she agreed to waive the charges and credit my account.
September of 2009, I made my regular monthly payment and called back asking why my Escrow account was negative $3380 this time. I was told they paid my taxes and insurance in Dec. 2008 and I carried a negative balance at the time. When I faxed her a copy of my statements showing I did not have a negative balance AFTER those things were paid and I cont. to carry my buffer money as well and made monthly payments with nothing being paid out after there was no way it should be negative. She said she would cont. to investigate to find out where the funds where. In Oct. my statement showed a negative balance of $3380, so I called back again. Again no luck. I threatened to get an attorney, call my State DA office, FTC, and take them to court. The responce was its only a few thousand why not just pay it. When I questioned why they can see it was in my escrow account but not visible at the moment in my account so what happened to it, the responce by 5 different people were 5 different answers.
Fighting for months my insurance and taxes come due in Dec. 09. They pay $2973 to my insurance company for a bill that was only $2073. My insurance company issued me a refund which I promptly paid back to BOA and stated in my monthly payment I was paying $900 additional to my Escrow.
Due to being negative at the time of all these payouts, my account went deeply negative raising my monthly escrow amount to more then triple the previous payments and triple my principle and interest payments. I have still not received an answer except that they see the money was in the account but cannot figure out what was paid with it. Now I am left to pay the negative balance and fight for longer to get what I initially paid into my account. I have sought an attorney who suggessted we take them to court but that is more money out of pocket.
I was told if I refuse to pay any Escrow and pay my taxes and insurance myself upon its next renewal and billing my Escrow account will go even further into the negative. How can it go further into the negative if I pay these bills myself by contacting the TA office and Insurance to bill me directly and I pay it myself? They also stated they will refuse to accept any payments that are not payments in full. I told them I wanted this in writing and they refused. They refuse to put their denials in writing and refuse to acknowledge errors in accounting for money.
They mishandle and mismanage money but yet they manage to pay back 80% of their bail out????? Ironic isn't it?
Product or Service Mentioned: Bank Of America Mortgage.
Monetary Loss: $365.