re: Mortgage company didn’t pay property taxes from escrow and property placed on auction list

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The mortgage company has a vested interest in making sure your taxes get paid or they risk losing the collateral that their mortage secures. You'd think they would be more diligent about it.

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You don’t understand Rocket Mortgage’s business.

They don’t care if you pay your mortgage, they’ve sold your mortgage to some other firm anyway.

That firm would be on the hook if the property is upside down after foreclosure and they’ve got insurance to cover that. No one cares if the taxes are paid other than the City or County.

Rocket Mortgage makes almost all of their money on the front end in initiation fees, etc. Maintaining an escrow account on the accounts they handled is a PITA to them and they only do as little as possible (legally and morally) to tend to that portion of their business.

Why folks don’t go to local Credit Unions for home mortgages is beyond me.

just because you have an escrow, doesn't mean you can't just make the payment. It might leave some money tied up for a while, but if it saves some hassle and scare, worth it.

Once you knew there was an issue, you could have then paid the county directly. Your mortgage company would eventually send you a refund from the escrow account.

I know this because I just deposited my refund check today. The issue I noticed was that they weren't going to issue the payment in time. To avoid any delay or problems, I paid it and things sorted themselves out. It's been about two months, so not too bad.

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that's why I always check the County Tax website in December to make sure.

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Let’s eliminate property taxes instead.

time to refi baw

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You don’t understand Rocket Mortgage’s business.

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My response was in general concerning how escrow works or it's purpose. It is there to protect the collateral by insuring taxes and insurance get paid so the lender doesn't lose out on the money they loaned you.

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Once you knew there was an issue, you could have then paid the county directly. Your mortgage company would eventually send you a refund from the escrow account.

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That was part of the story I didn’t tell. In the midst of this their automatic system must have assumed my property taxes were super low and they sent me a $9,300 escrow refund check. My taxes are $4,600. I get a notice with the check that my payments are being lowered due to an escrow surplus beginning in March. I then get another letter a week later stating my escrow account is low so my payments will be increased by $700 beginning in April.

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Using Rocket Mortgage is problem number 1.

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Meh. They generally service their own loans. I've had zero problems. If you go through

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a local company who actually cares to help you

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- they will sell it to Bank of America (or Rocket) after holding it the minimum length of time.

#Everythingsucks

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Using Rocket Mortgage is problem number 1. This is why you had issues. Find a local company who actually cares to help you, not some national company where you talk to Habib for 2 hours.

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Rocket might have bought the servicing to the mortgage.


To the OP, who was responsible for the penalties? Did you have to pay them or did RM pay them since it was their screw up??

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To the OP, who was responsible for the penalties? Did you have to pay them or did RM pay them since it was their screw up??

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RM said they will pay the fees. I guess I’ll have to check on that. Another funny thing is that none of the people at RM will tell you their last name. I usually write down names to document who I am speaking with and was told they are only allowed to provide their first name.

Sounds like a lawyer might get you a ton of money out of Rocket Mortgage if your property gets sold at auction.