Consumer complaint received 2016-02-26
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Seterus, Inc. (PA)

I am disputing the allocation of the {$7500.00} I submitted to Seterus in XXXX XXXX. In addition, my dispute encompass the XXXX XXXX Foreclosure Notice and the XXXX delinquent outstanding loan payments totaling {$3400.00} identified on the XXXX XXXX, XXXX account statement. 
On XXXX XXXX, XXXX, I received a " Transfer of Servicing Notice '' from Seterus informing me that effective XXXX XXXX, XXXX the servicing of my loan was being transferred from XXXX XXXX XXXX, XXXX. to Seterus , Inc . The next month, I received an account statement dated XXXX XXXX, XXXX, requesting I pay {$15000.00} with a due date of XXXX XXXX, XXXX. At which time, I was in a Chapter XXXX Bankruptcy, with a prepetition payment of {$470.00}. 
On page XXXX, of the XXXX XXXX, XXXX account statement, identified as Delinquency Notice, listed XXXX payments past due and authorized I pay immediately to avoid further action. The XXXX payments listed as follow : ( 1 ) XXXX XXXX, XXXX due {$470.00} ( 2 ) XXXX XXXX, XXXX due {$470.00} ( 3 ) XXXX XXXX, XXXX due {$470.00} ( 4 ) XXXX XXXX, XXXX due {$470.00} ( 5 ) XXXX XXXX, XXXX due {$470.00} ( 6 ) XXXX XXXX, XXXX due {$470.00}, totaling {$2800.00}. 
On XXXX XXXX, I submitted XXXX payments to Seterus , Inc . The first payment was for {$5000.00} to pay for the XXXX outstanding payments listed on page XXXX on the account statement dated XXXX XXXX, XXXX ( {$2800.00} ) in addition ( {$1400.00} ) to pay the agreed Chapter XXXX prepetition payments for XXXX XXXX due {$470.00}, XXXX XXXX due {$470.00}, and XXXX, XXXX due {$470.00} at which point my account should have been made current. 
I then submitted in XXXX XXXX, an additional payment in the amount of {$2500.00} to pay the agreed Chapter XXXX prepetition payments for ( 1 ) XXXX XXXX in the amount of {$470.00}, ( 2 ) XXXX XXXX {$470.00}, ( 3 ) XXXX XXXX {$470.00}, ( 4 ) XXXX XXXX, and ( 5 ) XXXX XXXX {$470.00} totaling {$2300.00}. By me paying these payments in advance my next payment should not have been until XXXX XXXX. 
On XXXX XXXX, XXXX, I received an XXXX Foreclosure Notice from Seterus informing me that my account was in foreclosure and I was XXXX payments delinquent. This time the months listed were as follow : ( 1 ) XXXX XXXX, XXXX due {$480.00} ( 2 ) XXXX XXXX, XXXX due {$480.00} ( 3 ) XXXX XXXX, XXXX due {$480.00} ( 4 ) XXXX XXXX, XXXX due {$480.00} ( 5 ) XXXX XXXX, XXXX due {$480.00}, and ( 6 ) XXXX XXXX, XXXX due {$480.00}. Totaling {$2900.00} plus and additional {$120.00} for Advances. 
I immediately called Seterus to confirm receipt of the {$7500.00} payment and was informed yes they received the {$7500.00} and applied it to payments back in XXXX. The money I submitted was applied to payments from two years ago all the way back to XXXX. This was surprising considering, I never received a notice from XXXX XXXX XXXX who was my loan servicer back in XXXX informing me or my bankruptcy attorney of any outstanding prepetition payments. This also raise a concern because Seterus did not notify my bankruptcy attorney or myself in writing of the months in XXXX that they applied the funds to. 
This could pose a serious problem not only a violation of my bankruptcy but furthermore, considering I have receipts for all my payments I made to XXXX XXXX XXXX in XXXX as my obligation in the Chapter XXXX Bankruptcy for my prepetition payments. 
On XXXX XXXX, XXXX, I contacted Seterus Bankruptcy Department and spoke with XXXX XXXX. XXXX informed me that as of the XXXX of XXXX XXXX, the trustee was still dispersing payments to my account. Despite, showing a discharge in XXXX XXXX, payments was still coming in and being posted to my account. She stated the last payment they received was on XXXX XXXX, XXXX in the amount of {$5800.00} from the trustee. She stated that my account is not settled as of the date of our conversation and that they ( Seterus Bankruptcy Department ) was still waiting to reconcile the account. She stated it looked as if the trustee was releasing p