Consumer complaint received 2024-11-12
Product: Mortgage — FHA mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: Shellpoint Partners, LLC (MI)

This involves Shellpoint Mortgage Servicer and XXXX  the new mortgage servicer, neither of whom have addressed WHAT HAPPENED TO THE ESCROW REFUND CHECK, and Shellpoint that refuses to acknowledge they caused the issue because THEY OVERPAYED THE TAXES AND THEN EXPECT ME TO PAY FOR THEIR MISTAKES!!! 
The escrow refund check was MAILED to Shellpoint, XXXX XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, WITH INSTRUCTIONS TO APPLY TO THE ACCOUNT!!! SEE ATTACHED. They did not apply the funds to the account nor address what happened to the funds because they were not forwarded to XXXX ( the new mortgage servicer ). See copy of voided ck attached which also lists where the ck was mailed. 
They also claim they applied payments properly but do not address the fact that it was their incompetence of overpaying the taxes in XX/XX/XXXX, XX/XX/XXXX and in XX/XX/XXXX and then caused the refunds to take months longer because they did not request the refunds until I kept advising them to. I also advised them to apply the escrow funds to my mortgage payments. Not one dime of escrow funds have ever been applied to the mortgage. 

Copy of first complaint : I have been in constant contact with Specialized/Shellpoint regarding these funds that Specialized/Shellpoint overpaid last summer and again in XXXX and my disputes and requests have in the past and continue to fall on deaf ears. As far as the refund sent from Specialized/Shellpoint, I returned the check voided to Shellpoint, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, in XX/XX/XXXX, as that was supposed to have been applied to the account ( past discussions and correspondence with Specialized/Shellpoint staff falling on deaf ears ). 

Specialized/Shellpoint has been misapplying all of my payments since last year wrongfully applying payments to additional principal, late charges and escrow. 

XX/XX/XXXX - Specialized/Shellpoint double paid the summer property taxes XX/XX/XXXX Specialized/Shellpoint did not apply my payment of {$1000.00} placed in Suspense Credit XX/XX/XXXX Specialized/Shellpoint did not apply my payment of {$1000.00} - placed in " Suspense '' Credit. 
XX/XX/XXXX - Charged account Accrued Late Charge {$25.00} at the same time applying XX/XX/XXXX additional principal {$480.00}. 
XX/XX/XXXX Specialized/Shellpoint did not apply my full payment {$680.00} left in Suspense Credit while account is past due XX/XX/XXXX Specialized/Shellpoint did not apply my full payment {$370.00} left in Suspense Credit while account is past due XX/XX/XXXX Specialized/Shellpoint charged escrow {$2300.00}. I notified Specialized/Shellpoint IN XXXX that I had paid the winter taxes yet Specialized/Shellpoint refused to stop the payment to the city which it DID NOT disburse until XXXX. 
XX/XX/XXXX Specialized/Shellpoint applied {$350.00} to additional principal and took {$25.00} for Late charges while account is past due XX/XX/XXXX Specialized/Shellpoint took {$25.00} for late charges XX/XX/XXXX Specialized/Shellpoint did not apply my full payment {$30.00} as Suspense Credit XX/XX/XXXX - Specialized/Shellpoint did not apply my full payment {$150.00} as Suspense '' Credit XX/XX/XXXX - Specialized/Shellpoint applied {$240.00} to additional principal while account is XXXX due XX/XX/XXXX - Specialized/Shellpoint received escrow refund {$2300.00} XX/XX/XXXX - Specialized did not apply my full payment {$120.00} as Suspense Credit XX/XX/XXXX - Specialized/Shellpoint applied {$240.00} as additional principal while account is past due XX/XX/XXXX XXXX Specialized mailed escrow refund instead of applying to account {$1500.00} while account is past due. 

Since this started in XX/XX/XXXX, Specialized/Shellpoint ( the previous mortgage servicer ) has wrongfully misapplied payments, kept this account in Past Due status, reported the account Past Due to credit reporting agencies, charged {$77.00} in late charges, applied {$1300.00} to additional principal, an amount well over the Past due amount, and issued a refund of {$1500.00} which has Disappeared after I voided the check and mailed back to Specialized/Shellpoint in XXXX. Whether Specialized had taken the additional principal applied or the refund, either amount would have been more than enough to cover the amount which Specialized claims is Past Due. To make matters worse, Specialized/Shellpoint received the escrow refund XX/XX/XXXX and failed to issue a refund for 60 days, all this time keeping the account in a status of Past Due. 

XXXX, the new mortgage servicer who took over the account XX/XX/XXXX, claims they have not been able to get information regarding this loan from Specialized/Shellpoint. I have requested they reapply all of the payments correctly and get the account out of " Past Due '' status. 
The escrow refund check that was returned to Specialized in XXXX has " Disappeared. '' Specialized claims they forwarded those funds, {$1500.00}, to the new service provider, XXXX, and XXXX claims that Specialized has refused to provide the XXXX with any information regarding this loan to get a proper accounting of the funds. XXXX does not have the correct beginning balance of the loan because of the misappropriation of funds from Specialized/Shellpoint. 
Not only have the funds from the refund of escrow " disappeared, '' but I made a payment to Specialized processed by my bank on XX/XX/XXXX for {$1000.00} which is also not accounted for by either Specialized nor XXXX. Now XXXX does not have the proper beginning balance and is telling me that they have requested the records from Specialized/Shellpoint to no avail. 
I have been in constant contact with both providers since last year. I have been in contact with Specialized/Shellpoint since last year regarding the misappropiations and overpayments of property taxes. I have been in contact with XXXX since XXXX when I was advised that they would be the new mortgage servicer. I have advised them of the misapproriations, in writing and verbally on the phone. I was in contact with XXXX in XXXX, XXXX and XXXX on the phone and in writing to provide an accounting of the misappropriated funds. I have sent XXXX all of the Specialized/Shellpoint statements, receipts of payments for property taxes ( including XXXX summer taxes ), copies of the voided refund escrow fund check sent to Specialized/Shellpoint, a letter providing details of Specialized/Shellpoints misappropriations, and whatever else they have asked for. 
XX/XX/XXXX was the last time I spoke to XXXX. I spoke to someone in customer service and a supervisor in the tax department. The supervisor in the tax department confirmed that they had double payed the taxes in error and agreed to credit the account within 5 days so I wouldnt have to wait months to get the refund back from the City. The general customer service representative confirmed they had received the information I had sent over a month ago, but said they could not do anything on the account until Specialized/Shellpoint provided the requested information. He advised that Specialized/Shellpoint refused to provide any information at all other than the beginning balances they provided when they took over the account. 
To date, XXXX has done NOTHING to correct the account. 
Neither XXXX nor Specialized/Shellpoint have addressed the Lost escrow refund check, nor the inappropriate handling of double payments of property taxes ( NOW 3 TIMES IN A ROW ) caused exclusively by negligent actions of these mortgage service providers. 
XXXX still has the account reflecting the wrong principal balance, still shows the escrow balance with the wrong balance because of the " lost '' refund check ( {$1500.00} ) from Specialized/Shellpoint.