Consumer complaint received 2017-10-12
Company: Ditech Financial LLC
State: OR
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Pursuant to 12 CFR 1024.35 I am informing Ditech Financial that our escrow account has a shortage of at least {$2600.00}. The reason for this shortage is that the Ditech tax department authorized payment to the INCORRECT XXXX County tax account in XXXX of XXXX, and has since paid OUR taxes, but continues to bill us for the shortage created by this error. Our tax account number is XXXX, Ditech Financial paid account number XXXX. The result of this mistake is that from XXXX of XXXX until XXXX of XXXX, we OVERPAID each month because our tax liability was {$2000.00} and the taxes for account that was paid was {$2600.00}. We are now being forced to pay into our escrow account for BOTH our taxes AND the {$2600.00} that was paid in error. 

On XXXX XXXX, XXXX we had an escrow balance of {$1900.00} and since that date we have paid an additional {$5400.00} for a total balance of {$7400.00}. Our ACTUAL escrow expenses ( PMI, Insurance, and Taxes ) during this time totaled - {$4800.00}. As of todays date our escrow balance should be {$2500.00}. But because Ditech has been unable to resolve this issue despite being made aware of it on XXXX XXXX, XXXX we are now being extorted. Forced to pay money we do not owe by threat of economic ruin if we refuse. In XXXX we were forced to pay {$1700.00} and this month we were forced to pay {$1500.00}. In XXXX and XXXX we were forced to pay {$1400.00}. Our ACTUAL mortgage payment should be right around {$1300.00}. We did not make the mistake, but we are being FORCED to pay because of it. 

Had our escrow been calculated correctly, using the correct tax lot, we should have had a monthly escrow payment just over {$400.00} ( exactly {$400.00} ). Therefore our mortgage payment for the past year should have been {$1300.00}. When our payment went up from {$1300.00} to {$1300.00} in XXXX of XXXX I called Ditech customer service. The gentleman I spoke with was able to show me that somehow our tax liability went from {$2000.00} to {$2600.00} ( I thought there must have been some massive bond that I missed on a local ballot ). 

I discovered the actual mistake in early XXXX of XXXX because we kept receiving a bill from the XXXX County Assessor 's Office. When I called Ditech Financial on XXXX XXXX, XXXX at XXXXXXXX PST I spoke with XXXX. XXXX transferred me to XXXX in the tax department who let me know that XXXX is the account that was paid. I informed her that our account was XXXX and she had me use XXXX to confirm this. On XXXX XXXX, XXXX XXXX County received the payment of {$2200.00} ( {$2000.00} plus late fees and interest ). 

I thought this would be the end, yet in XXXX we received a bill for {$1400.00}. I assured my wife that our mortgage payment would return to normal once the dust settled on this tax fiasco. When I received my XXXX XXXX bill of {$1700.00} on XXXX XXXX, XXXX I was furious! Now our recalculated bill was {$360.00} OVER what we should have been paying. This calculation included the deficit created by the {$2600.00} and a DOUBLE payment of the {$2000.00} amount as well as our PMI and insurance. I spoke with XXXX at XXXX on XXXX XXXX, XXXX. She promptly fixed the mistake of the DOUBLE charge of {$2000.00} charges and had our escrow recalculated. This action caused our payment to be at its current amount of {$1500.00}. 

I have now spent countless hours on the phone with the Ditech Financial customer service and tax department, speaking directly with employees at XXXX County Assessment & Taxation, contacting [ individual whose taxes were paid ] ( via XXXX XXXX, conversation documented ), researching legal remedies, and documenting this entire experience. 

AT NO TIME did anyone at Ditech Financial indicate that we had to make this request in writing. Numerous people told me it would be fixed. While searching for a remedy, I discovered that, until I notify Ditech Financial in writing, Ditech Financial can not be held legally responsible for correcting these errors, despite the several promises made over the telephone and an email claiming that this problem had been resolved ( reference # XXXX ). To correct this error I have done all the work! I found the mistake, I contacted the tax authority, I contacted the individual whose taxes were paid, I discovered that it was MY responsibility to notify Ditech Financial in writing. Through all of this Ditech has done virtually NOTHING! 

When I XXXX Ditech, the first page of results shows that, on XXXX, Ditech has a rating of 1.1 stars out of XXXX from XXXX  reviews. This experience shows me the reason for this incredibly low rating. Fortunately, my wife and I have good credit and strong income, so we are not forced to keep Ditech as our mortgage company. I truly sympathize with people who lack the knowledge or resources to deal with the incompetent and/or criminal behavior of Ditech Financial. We had to use money from our savings to cover the XXXX XXXX payment. We will have to continue to use our savings because, despite many verbal promises, this error is NOT being fixed. When it is fixed we wont receive a check for the money that has been TAKEN! Our mortgage payment will simply go down, which means we wont see the entirety of OUR money from OUR savings for TWELVE MONTHS! I will be contacting Senator XXXX XXXX, Oregons senior senator, who is a strong advocate for Oregonians. I also plan to file a complaint with the Consumer Financial Protection Bureau. I know there are many people that lack the resources to combat the egregious INACTION taken by Ditech Financial that is placing upon us a tremendous financial burden ( several hundred dollars each month now! ) and if this happened to us, then it is probably happening to others as well. 

I sent a letter containing most of the information above using Certified Mail. It was accepted by Ditech on XXXX XXXX, XXXX despite the Code of Federal Regulations 1024.35 stating that Ditech must acknowledge IN WRITING within XXXX  days that they have received my letter which is an official notice of error we have received NOTHING from Ditech . We are in the process of refinancing our home which will indirectly cost us tens of thousands of dollars. We are willing to lose this money so that we NEVER HAVE TO DO BUSINESS WITH DITECH AGAIN.

Company public response: Company believes complaint represents an opportunity for improvement to better serve consumers
Company response to consumer: Closed with explanation