Posted on: 09th Dec, 2006 06:06 am
I bought a new house in February 2006 got my mortgage with Flagstar Bank and had to escrow with the bank, which I prefer not to do. Anyway,. I get a letter in September that Flagstar bank is selling my mortage to Citibank. No big deal, everything remains the same. I get my first mortgage statement from CityBank and pay it off, never really looked at the statement. Then in November when I get my statement I am looking it over and my escrow account isn't right. It's $1,168.41 less than it should be. So I call them up asking where is my money!! I was livid. After 5 phone calls back and forth to the mortgage area and the home owners insurance area I find out that Flagstar bank only transfered so much to Citimortage.
So I call Flagstar Bank on September 22, 2006 and say where is my money!!! After another few phone calls I find out what happened. They paid someone else's home owners insurance out of my escrow account. So what I'm told is that they received a fax of a home owners insurance policy with no loan number on it, but the person had the same last name as me and the same insurance company. So I guess they "assumed" it was for my loan. Even though the address isn't the same, I live in Wisconsin and this house is in Minnisota.
Flagstar bank had all this information, I couldn't get the loan without proving I had home owners insurance and that I had paid for the first year of insurance.
Flagstar tells me that ok, they need to contact my insurance company and get the money back, then they (Flagstar) have to process it, then send it to Citimortage. I call Flagstar on 11/30/06 and was told they received the check from the insurance company and it would go out to Citibank the next day 12/1/06. I called yesterday 12/8/06 and was told the check wasn't sent until 12/5/06.
Now, in the mean time Citibank did an excrow analysis and because my escrow is short they upped my mortgage payments. Now I'm furious!
So when I spoke with Flagstar yesterday I said I wanted them to send a detailed letter to Citimortgage and copy me on what exactly happened. They say I have to call another number, I hate that one person can't take care of stuff. Anyway, I call had to leave a message, two hours later I get a call, I'm not at my desk so I had to call back, left another message and two hours later no calls and it's closing time.
I am so furious, I want to get hire an attorney. What idiots.
Has anyone else had this happen and if so what did you do?
Thanks
Kris
So I call Flagstar Bank on September 22, 2006 and say where is my money!!! After another few phone calls I find out what happened. They paid someone else's home owners insurance out of my escrow account. So what I'm told is that they received a fax of a home owners insurance policy with no loan number on it, but the person had the same last name as me and the same insurance company. So I guess they "assumed" it was for my loan. Even though the address isn't the same, I live in Wisconsin and this house is in Minnisota.
Flagstar bank had all this information, I couldn't get the loan without proving I had home owners insurance and that I had paid for the first year of insurance.
Flagstar tells me that ok, they need to contact my insurance company and get the money back, then they (Flagstar) have to process it, then send it to Citimortage. I call Flagstar on 11/30/06 and was told they received the check from the insurance company and it would go out to Citibank the next day 12/1/06. I called yesterday 12/8/06 and was told the check wasn't sent until 12/5/06.
Now, in the mean time Citibank did an excrow analysis and because my escrow is short they upped my mortgage payments. Now I'm furious!
So when I spoke with Flagstar yesterday I said I wanted them to send a detailed letter to Citimortgage and copy me on what exactly happened. They say I have to call another number, I hate that one person can't take care of stuff. Anyway, I call had to leave a message, two hours later I get a call, I'm not at my desk so I had to call back, left another message and two hours later no calls and it's closing time.
I am so furious, I want to get hire an attorney. What idiots.
Has anyone else had this happen and if so what did you do?
Thanks
Kris
Hi Kris,
There must have been some delay in processing because of which the check has not been sent as yet. You should wait another day or so and see what happens.
Inform Citibank also about all the details and I am sure they will lower the mortgage amount after they get the amount from Flagstar.
But I do not understand how they can make such a silly mistake of paying someone else's insurance from your account without making it sure that the money they are taking out is from the right person's account. Only the last name matched and the address is also different.
There must have been some delay in processing because of which the check has not been sent as yet. You should wait another day or so and see what happens.
Inform Citibank also about all the details and I am sure they will lower the mortgage amount after they get the amount from Flagstar.
But I do not understand how they can make such a silly mistake of paying someone else's insurance from your account without making it sure that the money they are taking out is from the right person's account. Only the last name matched and the address is also different.
I would reccomend getting someone's email address at Flagstar's escrow department and starting an email dialog in an attempt to get emails back regarding this that you can use as documentation.