Consumer complaint received 2022-07-03
Product: Mortgage — Other type of mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (FL)

My sister and I own a XXXX apartment complex in XXXX. FL. We refinanced the mortgage on the property a little over two years ago and the new mortgage holder immediately sold our mortgage to Fay Servicing. Our monthly mortgage payments include funds for our property, liability and flood insurance. When our property and liability insurance came due last XXXX, Fay Servicing neglected to pay the premiums from our escrow account and after several attempts to get them to pay the premiums without success we paid them ourselves so the policies wouldnt lapse. We informed Fay Servicing that we had paid the premiums and after several months and numerous requests from us, they finally reimbursed the payments from our escrow account. 

Now the issue is that they have purchased several insurance policies on our behalf stating that they never received proof of insurance. Our insurance agent has repeatedly faxed, emailed, and snail-mailed proof of insurance for all our insurance policies to Fay Servicing . My sister and I have repeatedly sent proof of insurance for all our policies by email and snail-mail and have repeatedly uploaded proof of insurance to their website. We currently have and have always had the insurance coverages that they require. Fay Servicing, however, claims that they never received proof of insurance for the coverages they require so they had to purchase additional insurance on our behalf and pay the premiums from our escrow account. In order to pay the additional premiums for duplicate insurance, Fay Servicing increased our monthly mortgage payments to cover the additional costs. 

When our flood insurance came due in XXXX, we were concerned that Fay Servicing wouldnt get the premiums paid on time, so we paid the premiums ourselves and informed Fay Servicing that we had. Once again, our agent faxed, emailed, and snail-mailed proof of insurance to Fay Servicing and my sister and I emailed, and snail-mailed proof of insurance and uploaded proof of insurance to their website. But just like they did with our property and liability insurance, Fay Servicing bought additional flood insurance and paid the premiums from our escrow account. To date they have paid for {$3400.00} of additional insurance that we dont need. None of our insurance policies have ever lapsed, although they would have if we hadnt paid the premiums ourselves.

We have spent many hours talking to several different Fay Servicing Representatives trying to resolve the issue. Each one seems to understand the issue and promises to correct the issue, but none of them have and theres no end in sight. The letters Fay Servicing sent stating that they had not received proof of insurance also state that once they have received proof of insurance, they will cancel the policies and refund the unused portion of the premiums, however, by the time they get around to doing so there wont be any premiums left. Since our policies never lapsed and the issue is apparently with their system tying our proof of insurance submissions to our account ( or intentional fraud ), we should get a refund for the entire premiums theyve paid. It almost seems like they intentionally neglected to pay our premiums just so they could purchase insurance on our behalf and then even though we paid the premiums before the insurance lapsed, they went ahead and purchased additional policies on our behalf anyway. 

Concerning our flood insurance, we were required by FEMA to purchase separate policies for each of the XXXX duplexes on the property. Fay Servicing requires {$250000.00} of insurance on the property and we have four {$50000.00} policies and one {$55000.00} policy. Each of the buildings has a separate street address even though they are all on the same property. We've repeatedly explained the situation to Fay Servicing representatives and repeatedly sent Fay Servicing very detailed explanations including the county 's listing of the property showing each building 's address and that they are all part of the same property but they keep insisting that we only have {$55000.00} of insurance because they only recognize the one policy that is listed under the property 's legal description/address. 

We are so frustrated with Fay Servicing that weve decided to put the property on the market so we can get Fay Servicing paid off and not have to deal with them anymore. Unfortunately, our original mortgage includes an early termination fee, which means well l have to pay Fay Servicing another {$10000.00} if we pay them off even though we didnt make that agreement with them and dealing with them is the primary reason were selling and paying them off.