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can a mortgage hold my escrow surplus check for a late payments

Posted on: 03rd Sep, 2008 05:19 pm
I have a surplus check that belongs to me from my escrow account,they will not release it to me until I make a payment on my mortgage it is a big check what shall I do help me.
For 11/2 years I begged my mortgage company to understand that my taxes were incorrect. I went to my township, they faxed and sent letters saying that they removed my homestead tax credit-resulting in overcharging me by 1800.00.
In Jan 2010 I received a letter from my township saying that 1800.00 was refunded to my mortgage company. I called and was told because i was behind in payments they couldn't give me my money. I was told it would be applied to my past dues. So, assuming that went to my late payments when /I did send a payment in I actually went into foreclosure.
They then put me in a loan modification program which I wrote and begged them to set my taxes at the right rate- they claim they did. I sent 2 western union checks to for the first payment, I called they said they received everything and my first payment would be due in 2 months. I called to make my first payment and they claimed that I was already behind 1 month. Claiming they only received 1 check
I lost it- I said I was not paying anything until this tax problem is resolved and they find my second check.
Needless to say by the time they corrected my taxes I again went in foreclosure. I signed up for the forbearance program paid that successfully and they finally gave me my 1800.00 2 months later. in june of 2011.

My questions are--1. Can they hold my money due to a CLERICAL ERROR by my township? Do they have to release my refund wether I'm current or not 2. The day I signed the loan modification I was current, why didn't they release my money then.

Thank you
Posted on: 27th Jul, 2011 07:34 am
If you were not in default, then the lender won't be able to hold back the refunded amount. They should have given it back to you.
Posted on: 27th Jul, 2011 11:47 pm
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