Consumer complaint received 2017-10-15
Company: PENTAGON FEDERAL CREDIT UNION
State: NJ
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Closing on a mortgage

Complaint:
I had a closing for purchasing a house at XXXX XXXX XXXX, XXXX NJ XXXX on XX/XX/XXXX My mortgage service provider is Penfed ( pentagon federal credit union ). They had a promotion that they would cover up to {$10000.00} in closing costs as long as I use their sources for closing. I used their assigned real estate agent, I used their assigned company XXXX XXXX XXXX to handle to closing. 

Concerns started to arise with XXXX XXXX XXXX from the beginning. The seller 's lawyer did want to work with that company as he felt that they were ill prepared and unqualified. 

I thought the seller 's lawyer was being difficult. But the lawyer seller'slawyer turned out to be right. On XX/XX/XXXX the day of the closing, I was informed I would have an attorney present that would represent me the buyer. Instead, I received someone who simply has the ability to notarize documents. Penfed and XXXX ( XXXX XXXX XXXX ) representative did not explain any documents I was required to sign. She simply asked me to sign all the printed documents that was given to her. Many documents were not applicable to the presented situation. The seller 's lawyer was present and also refused to have many requested documents signed due to the fact those requested docements were not applicable. 

On XX/XX/XXXX, I received a DELIQUENT TAX NOTICE of {$2500.00} by XXXX, NJ. The town I purchased the house in. I called the town and told them that I am having escrow money taken out and this taxes should be paid by my bank, Penfed. They also, said this taxes is for XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. I told them I only purchased the house in XX/XX/XXXX and that I should not have to pay taxes for the previous owner. The tax notice is listed under the prior owner 's name but the envelope has my name on it. 

I proceeded to call penfed explaining them the situation. They explained to me that at closing I was credited {$820.00} by the prior owners to pay for the taxes I told them, I never saw the {$820.00} that was given to me. But how would that explain the {$2500.00} deliquent tax bill? Should my service provider ( penfed ) take care of that? They apologized and told me that I was supposed to pay tax bill and that penfed would start servicing my loan and pay the taxes from my escrow on the next tax quarter. 

My main issue is that although I see a {$820.00} credit on the closing documents. It was not made clear to me what that was from. I was never notified that I would have to pay an additional XXXX for taxes on top of my closing costs. This is a large amount of money I am ill prepared to pay. I have paid the deliquent tax bill to avoid any further stress and interest on the bill. 

I was also, only very late in the closing process of obtaining a penfed mortgage given the actual amount I would be credited from the promotion that was boasted of up to {$10000.00} closing cost. I received roughly a tenth of that amount. I feel that was false advertising that so little of my closing was covered. I was also lied to that I would receive an attorney that would represent me during closing. Finally, I would like the {$2500.00} that I paid extra on top of the closing cost. I was simply not informed. 

I reached out to penfed complaining about the situation. They reached out to XXXX and said that XXXX would reimburse me. XXXX sent me a {$50.00} check which I have not deposited. Penfed then responsed to my email complaint by saying the situation is resolved. I forwarded them my email complaint to tell them that it was not resolved. They have not responded back. 
XXXX XXXX XXXXXXXXXXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with monetary relief