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columbus · 08-02-2016, 08:46 PM

Wondering if any of you smart ERers had any advice for me. Long story short, our bank never notified us of a $50 escrow increase and continued to accept our normal va loan mortgage payment on a rental and putting in unapplied funds and moving towards foreclosure! We had perfect credit and home has $100k in equity. When we found the issue we had to pay about $1500 to get reinstated and now our perfect credit is shot. FifthThird refuses to do anything to help and has lied to cfpb in their response to our complaints. Any ideas? We were thinking maybe small claims court and a credit fixing company?

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dallas27 · 08-02-2016, 08:49 PM

Take them to court immediately, you will get their attention then.

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columbus · 08-02-2016, 08:59 PM

Attorney sent a letter and it didn't phase them. No attorney would take on at no cost due to no big payoff. One was for respa violations but then got scared off because we were too proactive in contacting the cfpb who did nothing to help other than tip off fifth third on what proof we had of wrongdoing.

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ERD50 · 08-02-2016, 09:01 PM

Details please.

I questioned whether a VA loan can be used for a rental property, and a quick scan seems to say only if owner occupied. So is that the case for you?

http://www.military.com/money/va-loa...nvestment.html

Quote:

The VA loan can be used to purchase up to a 4-unit house so long as it is owner occupied.

How does a $50 escrow increase translate to foreclosure threats and $1500?

I sense a lot was left unsaid.

-ERD50

Just_Steve · 08-02-2016, 09:12 PM

I don't know about the OP and others but I know beforehand if my escrow payment is going up and by how much.

ERD50 · 08-02-2016, 09:27 PM

Quote:

Originally Posted by Just_Steve

I don't know about the OP and others but I know beforehand if my escrow payment is going up and by how much.

I pay my taxes and insurance directly, so have not had an escrow payment in decades. But I'm still pretty sure that the amount due showed up right on the monthly statement. How could it not? Why would they keep it a secret, they want you to pay it right?

Something is smelling fishy, and it isn't the smoked mackerel I bought today.

Maybe there is a reason why no lawyer wants to take this on?

-ERD50

columbus · 08-02-2016, 09:29 PM

We used to live there as owner occupied and moved...now rent it. They sent letters to that address that tenants just sat on even though we changed our mailing address and they have mortgage on our new home. Never emailed us and only called a few old phone numbers...not my cell I have had for long before the mortgage. Its been insane but yes...they sent to foreclose over about $300 in escrow shortage and held thousands in mortgage payments in unapplied funds. We only found out when we logged in looking for missing tax doc at tax time.

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columbus · 08-02-2016, 09:36 PM

They dont mail statements...they have been a disaster since we started with them...they said they called our 9 digit account number and said someone answered and said we dont work there. So many lies and terrible processes I dont blame you for not believing me...its an insane situation. Looking for advice on no/low cost lawyer, small claims or other options.

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ERD50 · 08-02-2016, 09:49 PM

Quote:

Originally Posted by columbus

They dont mail statements...they have been a disaster since we started with them...they said they called our 9 digit account number and said someone answered and said we dont work there. So many lies and terrible processes I dont blame you for not believing me...its an insane situation. Looking for advice on no/low cost lawyer, small claims or other options.
...

I believe you when you say they messed up in communicating to you. But the bill is your responsibility, and it is your responsibility to make sure you are current.

It's like saying "the bill got lost in the mail, never got to me, so I don't owe it". It doesn't work that way.

My advice is to stop looking into small claims courts or other options. They will just tell you the bill was your responsibility, and you will be throwing more time/money into a lost cause.

Unless you can prove that you were proactive and checked on your billing status and they somehow 'hid' the charges from you. Otherwise, chalk it up as a tuition payment.

-ERD50

pb4uski · 08-02-2016, 09:58 PM

Write a letter to the CEO or President. I worked for a financial institution and complaint letters to either got special handling but more seasoned executives who could cut through the red tape.

That said, it sounds like your nonchalance may have been part of the problem.

Sunset · 08-02-2016, 10:04 PM

And never trust your tenants to forward or even tell you mail arrived for you.

I repeatedly told my tenants if any mail ever shows up for me, just keep it, but no never happens and I know mail has been lost.

Another Reader · 08-02-2016, 10:19 PM

I track all the mortgages on-line. I do not trust servicers to handle things correctly so I follow their tax and insurance payments. I expect an escrow analysis letter every year for all of them and the letter is on-line as well in most if not all cases. I have had as many as two dozen mortgages and kept up with all of them.

Tenants never forward mail. If I see a service provider or an HOA with the property address as the mailing address, I correct that immediately. I did have a problem with SW Gas once. They decided to mail the final bill to the property address for a house I sold after sending the bills to me for several months. Took a while to sort that out, but I should have expected that bill.

carnivalday · 08-03-2016, 06:04 AM

Im still wondering how you are using a VA loan on a rental that you dont live in. They probably sent a notice to that address about the escrow change, but since you dont live there, you didnt get it.

pb4uski · 08-03-2016, 07:05 AM

.

Quote:

Rental Conversion
What happens when you move into the property then later on decide to buy yet another home, keeping the existing property as a rental? VA lenders understand this happens and it’s not uncommon for a veteran to buy another property and keep the rental income. Most often the rental income more than covers any existing mortgage and can make a lot of sense.
Yet moving out doesn’t mean the loan is now considered an investment property. VA lenders approve loan applications based upon the intent of the borrower at the time of application and not what might happen in the future. If you buy and immediately rent it out, then there might be a problem.

The VA establishes requirements that lenders must follow but there are also general guidelines that are left up to the interpretation of the lender. In addition, individual VA lenders may also have their own requirements in addition to what the VA issues. If you have questions about occupancy, talk to your VA lender.

columbus · 08-03-2016, 07:12 AM

We got a va loan when we bought and lived there...then had kids and moved but kept house as a rental. We updated our address, they had phone, email, etc. We signed up for email alerts, etc. They failed to update anything after many attempts...they lied and said all letters went to our current home and they called my cell. All turned out to be false. They then lied to cfpb that all mailings have always gone to the rental address which is false...we have last years tax doc sent to our home address. I agree we are responsible for our bill but when we auto bill pay and are not notified at all of any issues and then this happens and they wont help fix our credit and refund bogus fees I think its absurd.

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columbus · 08-03-2016, 07:13 AM

Could a local bank or retail store get away with this...no

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columbus · 08-03-2016, 07:14 AM

We also have two other mortgages with other companies that had mot problems updating our info...as well as all other ccs etc. FifthThird is just a mess and we pay the price?

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dallas27 · 08-03-2016, 07:16 AM

You can also report to BBB, consumer protection bureau, report to congressman, etc. hit them from as many angles as possible to create work for them.

I'd want to get their claims of contacting you documented, them ask them to produce records of calls in court to show they aren't lying. Immediately (counter)suing would force this.

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