Home Loan Question - Issues with Provider

My first thought: have you upheld your end of the issue, ie, have you sent the insurance payment requests in a timely fashion to the servicer, and then checked to make sure that the payment is made? I'm not sure what you mean about your escrow account getting "messed up", but it is routine for the escrow to be slightly out of sync due to timing of payments, etc. It will fall into negative, but the mortgage company will cover what comes due until your escrow payments catch up. Then, in the next year, the mortgage servicer may increase your escrow payments to help cover any estimated shortfalls.

If your insurance truly wasn't paid (rather than simply paid late), you have a legit issue. Did your policy actually lapse due to non-payment?

I got a check two weeks ago from my servicer for escrow overpayment, it is required by law that they issue the check. The notice also reset my monthly payment to a lower payment.

Once I called them and told them my taxes are going to be higher than they predicted (they estimated the prop tax on previous owner tax, who had senior citizen discount), they cancelled the check and re-applied the funds to my escrow.

However, law doesn't allow them to re-instate my original monthly payment so I don't end up in a mess next year.

Thankfully, the nice lady on the phone explained to me and walked me through the steps to make "extra" payments toward my escrow through the normal draft.


LESSON:

When your mortgage company sends you a check, something is fricked up.



USAA is my servicer.