Consumer complaint received 2023-02-27
Company: Specialized Loan Servicing Holdings LLC
State: NC
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
When I closed on the property at XXXX XXXX, an insurance policy was put into effect covering both wind and hail and homeowners insurance. 
Also, a check was mailed to XXXX, but there was confusion as to the receipt of the check, so they canceled the policy, and the Insurance company was made aware of the issue, it was reinstated for {$3000.00}. The correct policy number is XXXX. The policy ran from XX/XX/XXXX to XX/XX/XXXX. See attached. 
Due to confusion and wanting to make sure I was insured, I contacted XXXX to put a hazard policy in place for {$1500.00}, which I paid myself. The error with XXXX was corrected, I was able to cancel the policy with XXXX since it was no longer needed, and they refunded the balance to me. 
It took quite some time for you to understand that there is only XXXX insurance policy with XXXX. Policy XXXX was never in effect, so the insurance agent provided a cancellation notice It is attached. But you paid anyway. The funds for this policy were {$3000.00}. North Carolina Insurance refunded me, and you acknowledged receipt of it on XX/XX/XXXX. At that time, I requested that you apply the funds in escrow toward the correct and only policy XXXX. 
The correct and only policy is with XXXX - XXXX and is {$3400.00} a year. 
Also, you requested {$1000.00}. XXXX for an escrow shortage, which I sent, and you acknowledged receipt on XX/XX/XXXX. You said you received both, but they were not applied to escrow. So, they you told me I was {$5000.00} short, which is incorrect. 
Additionally, I have made my monthly payments on time through XX/XX/XXXX, even though I was told to wait to make payments until the analysis was done and the second incorrect insurance policy was removed from the escrow analysis. 
The XXXX statement that you sent at that time said the monthly amount was {$2100.00} with an escrow of {$990.00}, which was also incorrect. I called because the second, non-existent insurance policy appeared to be included. Again, you told me to wait until it was corrected, but you charged me for late payment, damaged my credit, and have not applied for the payment. But I paid the XXXX based upon the current monthly amount I had been paying because I did not want to have a late payment. At the time, that payment was not applied. 
In XXXX, you finally got the monthly escrow correct, and my payment is now {$1700.00}. You told me to hold XXXX days to pay until you have the correct accounting. We called on the XXXX day. We received the XXXX statement showing the escrow shortage was down to only {$560.00}. 
We got charged another late fee, even though you told us to wait. On XX/XX/XXXX, we paid the {$1700.00}, which I am being told has not been applied. 
On XX/XX/XXXX, I received a statement showing the correct escrow amount monthly of {$470.00}. 
We received another statement on XX/XX/XXXX. On that statement, I am not seeing that the payment of {$1700.00} was paid on XXXX. I do not see the {$3000.00} that I sent in XXXX, which you acknowledged you received. I see the {$3000.00} going in, and then I see it coming out of the account. Why is that? It appears that the past due amount includes the {$3000.00}. Where is the check? 
Furthermore, I received a notice on XX/XX/XXXX ( attached ) that there is going to be a refund for insurance. What happened with this check attached, which I endorsed and mailed to you, and what is happening with the letter on XX/XX/XXXX? XXXX attached. 
Unfortunately, what I see are mistakes on your part by paying insurance that was not in effect and late charges. I am requesting all late fees and lates with the credit agencies be removed. 
If the late charges are removed, the {$3000.00} credited back, and the {$1700.00} is applied, there should only be a residual amount. We would like to have this resolved and the credit updated prior to the new servicer taking over the account.

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 explanation