More ASC servicing, escrow and repayment plan problems
I have been battling ASC for some time now, and after reading your website, I have realized that I am not alone, in fact I seem to the same problem as patty black minus the foreclosure notices.
I have not pursued anything for I wasn’t aware of what I could do. The only paperwork that I have received from ASC ever since they acquired my loan has been bills and late notices. When they acquired my loan the conveniently forgot to add the escrow, insurance, and taxes into my payments.
When I was finally able top get ASC in touch with my insurance agency they (ASC) billed me the full amount of the insurance $880 along with the new “adjusted” payment. I also missed 1 or 2 payments and tried the repayment plan, but no mention of anything in writing and when I went to pay 1 day late they ignored the fact that I was on this repayment plan saying that it is cancelled after being late.
Now then where is the $500 that I paid being applied to? It was not in the bill as a payment, and I was stupid enough to do this twice! So now they have $1000 of my money that has not been applied anywhere to my account. Do you have any knowledge of a class action suit against them or know anything I could do about this cancer among mortgage companies? Thank you, ...
Your extra payments with the monthly payment are most likely going to your escrow account for FUTURE insurance and tax.
And you should definitely RECORD all phone calls and FOLLOW UP in writing with a CALL SUMMARY if they refuse to provide a written payment plan.
CONTINUE to make the payments under the plan if you can’t bring the loan current with a lump sum payment. Make the payments so you have PROOF of payment, either online or mail a check with delivery confirmation.
And request your accounting as per RESPA
You read Patti’s postings, didn’t you see the RESPA topic and the sample accounting requrest?
As I probably posted already 20 times, if people don’t take advantage of every legal right, they are likely to lose their homes or at least have their credit destroyed. ONLY if YOU prepare your case and YOU ensure that you have slam dunk legal claims do you have a slight chance of finding a competent lawyer to take your case on contingency.
Review your credit reports and dispute all INCORRECT lates related to this mortgage after they received your accounting request.
Payments have to be 30 days late before they can be reported to CRAs, but they COULD begin foreclosure proceedings if you are only 1 day late. People often think that they have the RIGHT to pay late because lenders can’t even charge a late fee during the grace period, but you are in violation of the contract as soon as a payment isn’t received by the due date.
Often lenders report the mortgages as late WHILE on a repayment plan.
I haven’t seen any litigation over this, but if you MODIFY an agreement and you comply with it, you obviously should NOT be reported as late while you make the payments according to the new agreement.
I also have a client with similar ASC problems, apparently they frequently do not set up escrow accounts after the loans are transferred to them. We are currently awaiting accounting to see where the $2,500 escrow balance from the PREVIOUS lender went.
Good luck!
Posted by Christine on 05/21/2007 at 11:14 AM
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