Consumer complaint received 2018-10-27
Company: MONEY SOURCE, INC., THE
State: OR
Product: Mortgage
Sub-product: VA mortgage
Issue: Trouble during payment process

Complaint:
XX/XX/XXXX I received a letter from my mortgage company that my insurance coverage on my existing home wasnt enough. This turned out to be not true. This was a automated letter and not correct. However I decided to add earthquake coverage to my insurance ... I told my mortgage company this. The added earthquake insurance added XXXX a year to my premium. At this time I was told I will have to come up with the difference. Then about a week later the lender said they will pay the entire bill, including the additional earthquake coverage. At this time they said they sent a payment for XXXX, and theyll pay the additional amount. My insurance bill is XXXX with earthquake coverage. Bear in mind I made it PERFECTLY clear theres going to be additional funds due to XXXX XXXX XXXX. 
I called my mortgage company on XX/XX/XXXX to see why my insurance hasnt been received. ( I later found out it had been received by the insurance company but didnt update in their automated system. ) BUT I found out TMS, my mortgage company sent TWO payments to my insurance company!! One for XXXX, and another for XXXX! The only things the mortgage company had to do is send the difference! I made several attempts to correct this problem but TMS offered nothing to my satisfaction. I was told to wait for a refund check from the insurance company. Im not OK with this because the postal service in my area is VERY unreliable. The offer was made to have XXXX XXXX send the check back to TMS ... .. but this required a faxed hand written letter, from me for this request. I dont have a fax machine, and to be honest not the best at current technology. 
Im very upset over a few things over a few key key points. 
1. Two payment to my insurance company by my mortgage company in the full amounts when I told them only a small amount was due to cover additional earthquake coverage. 
2. TMS blindly sent another payment without checking their system. My wife worked as a busses office manager. She said someone should have caught this. When I confronted a team leader at TMS about this he said they legally have to send any bills due. 
3. During this entire process TMS blindly sent bills to XXXX XXXX, but expected me to be the middle man, resulting in confusion. I TOLD THEM I added earthquake coverage to the one and only mortgage I have.

4. Property taxes are due now in Oregon ; since they paid my insurance twice my escrow will be short. The only response I got was we didnt do a escrow annualized on your account. Anyone with a third grade education can figure out this will result in a escrow shortage. 
Ive called and talked to several people at TMS on XX/XX/XXXX and I warned them this issue gets resolved today or a complaint will be made. I specifically asked for a manager in the insurance department, but didnt get one. I did get a manager but wasnt in the insurance department, as far as I know.

I also said if they try to collect additional escrow payment from me, because of their mistake, I will seek legal counsel. However I wont be surprised if they ask for additional escrow anyway, considering how poor the communication is in TMS. 
I know with a VA loan the insurance has to be included in the mortgage payment. However if the VA and lender dont trust veterans to make insurance payment on their own. Then the mortgage company can deal with any issues! If I was able to make the payment myself this never would have happened. Now Im potentially out XXXX dollars before XXXX. Now I need to hope I get a refund check from my insurance company, so I can send it back to the mortgage company and hope they apply it to my escrow account. Which I have ZERO confidence theyll get this right. Since they failed to listen to anything I told them and get payments correct. 
I will appreciate any help you can give. This is highly stressful with XXXX near. 
Thank you, XXXX.

Company response to consumer: Closed with explanation