Mortgage -- Trouble during payment process -- Complaint #6021057

Complaint Overview

Complaint ID: 6021057

Company: Fay Servicing, LLC

Product: Mortgage

Sub-Product: Other type of mortgage

Issue: Trouble during payment process

State: Ohio

ZIP Code: 45420

Date Received: 2022-09-26T12:00:00-05:00

Date Sent to Company: 2022-09-26T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

The following statements are in response to an annual escrow review statement sent XX/XX/XXXX. I have made Fay Servicing aware of the issues with their escrow distributions through XXXX XXXX and Vice President XXXX XXXX. They have not addressed the issues and refuse to remove my escrow account. They are in breach of contract because they missed a real estate tax payment resulting in penalties to me. I have managed my properties for over 12 years and never missed a payment. I am kindly requesting they remove escrow from my account due to the breach of contract and poor management. NOTES IN RESPONSE TO LETTER BEGIN HERE : I noticed single asterisks and they do not pertain to an explanation on the bottom of page XXXX or XXXX. What does a single asterisk mean in this case? Theres an E at the bottom of table 2 and there is no footnote explanation or the like. In table 1 ( projections ) what does CO 1st 2nd P pertain to? In table 1 ( projections ) what does County 1st pertain to? In table 1 ( projections ) the insurance estimates are higher than last years premiums paid by owner. There is a {$590.00} over estimate on insurance premiums paid by buyer. Show where youre getting insurance estimates from. Table 1 ( projections ) first half - County taxes are paid more than 60 days in advance resulting in a negative escrow balance months before taxes are due. Owner pays insurance through his own methods and has not used escrow to perform these duties. When will his escrow overage be applied in XXXX once insurance is paid and proof uploaded to Fay Servicing? Owners calculations for escrow are the following : Property taxes for XXXX3 = {$10000.00} Insurance premiums XXXX = {$4200.00} TOTAL : {$14000.00} Spread out over 12 months is {$1200.00} per month Fay Servicing requires {$2500.00} as a minimum escrow balance - where does this amount come from? Please explain. The negative escrow is reached by paying property taxes more than 60 days before they are due. This process forces a negative escrow balance where if they were paid within 2 weeks which is common the negative balance would not show. The timing of escrow distribution is intentional to create a negative escrow balance resulting in the false perceived need to increase monthly payments thus putting undue hardship on owners. The owner kindly request county tax payments be made no more than 2 weeks before due date. History shows double payments of county tax payments, resulting in a negative escrow balance in XXXX. Fay Servicing failed to pay from escrow a tax bill for XXXX XXXX XXXX resulting in delinquent status endured by the owner. Fay servicing is in breach of contract for not making timely payments for property taxes held in escrow thus causing undue management efforts by the owner to fix Fay Servicings oversight. Owner is putting on record the request to remove escrow from his account as soon as possible.

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