Consumer complaint received 2017-01-26
Company: NATIONSTAR MORTGAGE LLC
State: MA
Product: Mortgage
Sub-product: Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account

Complaint:
XXXX coverage was suddenly required in XX/XX/XXXX after 11 years of owning my condo. 
I have a master policy as part of the condo association that has been adequate for the last 11 years. 
In XX/XX/XXXX, existing insurance was suddenly determined to be inadequate without any notification to me. 
Escrow account got added demanding an additional {$500.00} per month for an insurance premium of {$2300.00}. 
Current mortgage payment is {$560.00}, adding {$500.00} for the insurance per month ends up doubling my mortgage payment. 
This math never made sense to me, as {$500.00} per month for a policy costing {$2300.00} would end up costing me {$6000.00}. No one has been able to explain this math to me. 

I have not missed any payments in 11 years of owning this condo. 
After the force placed insurance, they 've started applying my principal and interest payment to the escrow account and now my P & I payments show as overdue. 
They can not consider an appeal because my account is now " not current ''. But that 's because they have not applied my payments to the actual mortgage payment. 
No one told me this was happening or that this was how the payments would be applied. 

They call me several times per day and when I answer, it 's a recording that tells me to call them back. 
I get nowhere with their first tier advisors. Any time I ask for a supervisor, the call mysteriously gets disconnected. 
Advisors are located in the XXXX and do n't seem to be familiar with their policies. I get different information from each advisor I speak to. 

Force placed insurance : XXXX ASSURANT SPECIALTY PROPERTY AMOUNT PAID XXXX DATE PAID XX/XX/XXXX NEXT DUE XX/XX/XXXX XX/XX/XXXX Spoke with XXXX from insurance department " All of the force placed insurance will be removed after proof of XXXX is received. '' " 2 business days after receipt of proof, force placed insurance is removed. All funds that were applied to escrow account will move to P & I. '' Then spoke with " XXXX '' who contradicted everything XXXX told me. 
She told me that no funds will be moved from the escrow account to my principal and interest payment. I wanted assurance that if I went out and bought my own policy, that the payments from the first would be refunded to me. She did n't seem to understand what I was asking. 

I then purchased my own XXXX policy. 

XXXX Current balance of {$1300.00}. 
Paid a quarterly payment {$570.00} XX/XX/XXXX This required me to spend {$100.00} for a wind mitigation inspection. 
I submitted proof of my new policy to Nationstar on XX/XX/XXXX. 
Note : this new policy is paid through XX/XX/XXXX and I am making quarterly payments. 

On XX/XX/XXXX, I received a strange email from Nationstar that they had paid my new policy in full out of my escrow account. 
Note that they had already taken {$2300.00} out of my escrow account to pay for the force placed insurance. 
Also note that I had paid for a quarter of my new policy already. 

Spoke with XXXX on XX/XX/XXXX She is based in Texas ( 3rd person I spoke to on XX/XX/XXXX as I kept getting transferred. ) ( First person I spoke to told me that they paid a full year of my new insurance " because I let my insurance lapse so I ca n't be trusted ''. ) No refund yet. No record of this payment received by my new insurance company, They have cancelled the force placed insurance, but No refund of old policy has been applied yet. 
XXXX was supposed to research my escrow account and insurance balance. 
Was supposed to email me with her findings. So far has not.

Company response to consumer: Closed with explanation