Consumer complaint received 2015-12-23
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Pacific Union Financial, LLC (NJ)

I refinanced my mortgage to a 15 year fixed with XXXX XXXX of XXXX. XXXX, NJ in XX/XX/XXXX. The loan was reassigned to Pacific Union Financial in XX/XX/XXXX or XXXX. I have always paid my property taxes directly to my municipality, XXXX, New Jersey. When I refinanced with XXXX XXXX, as part of the loan agreement, I continued to pay my property taxes directly, with no escrow account on my new loan. 

XX/XX/XXXX I went into XXXX XXXX XXXX to make my quarter XXXX property tax payment which was due on XX/XX/XXXX only to find out that the taxes had already been paid by Pacific Union Financial. Subsequently, when I went online to pay my mortgage payment as I had always done with Pacific Union, the amount of my monthly payment jumped from the established principal and interest payment of {$1300.00} to {$2300.00}. Since Pacific Union had paid my quarter XXXX taxes, I made the online XX/XX/XXXX and XX/XX/XXXX monthly payments with the additional {$1000.00} for a total of {$2000.00} above my principal and interest payment. 

XX/XX/XXXX I sent a certified mail letter with XXXX checks, the first in the amount of {$200.00} to pay off the total of my quarter XXXX property tax payment. The second check was for my XX/XX/XXXX principal and interest of {$1300.00}. Along with the letter I sent a copy of my payment receipt of the quarter XXXX taxes to the City of XXXX. To my dismay, there was no change in the status of Pacific Union coercing me into an escrow account. 

I tried numerous times through telephone conversations to resolve the matter to no avail. One customer service rep told me to send in a letter with documentation to request removal of the escrow account. I did that in XX/XX/XXXX and never received a response from Pacific Union Financial. I continued to mail my monthly principal and mortgage payment of {$1300.00} to Pacific Union Financial. I went into pay my quarter XXXX taxes to the City of XXXX and was told by the City Administrator, XXXX XXXX, that I have a credit of {$870.00}. Since I had a credit, I did not make a tax payment. 

A month later, after receiving an intent to foreclose letter from Pacific Union Financial, I called Pacific Union to discuss the matter and lost contact with the customer service representative when I asked her how their company can justify charging me escrow when I have always paid my taxes. Moreover, how could Pacific Union justify charging me what amounts to an annual payment of nearly {$11000.00} over my principal and interest payments when my annual property tax bill is only {$6800.00}. It was at that point that I lost contact with the company rep. Since I did not want to be foreclosed on, I took out a pension loan so I could send Pacific Union Financial the {$2700.00} they said must be paid by XX/XX/XXXX to avoid foreclosure. 

I am very perplexed and confused as to how someone who has always paid his mortgage on time and has never had an issue paying his property taxes is now being strong-armed into making exorbitant escrow payments. I am a single parent household with XXXX young sons. I always thought that the term " predatory lenders '' applied to those companies who gave mortgages to individuals who really could not afford the cost of a particular home that was out of their price range. After going through this experience with Pacific Union Financial, I realize that even those who always make timely mortgage payments can fall victims to predatory schemes. 

I anticipate that a new " Intent to Foreclose '' letter will soon be coming from Pacific Union Financial since I just sent them my XX/XX/XXXX XXXX principal and interest payment of {$1300.00}. They already have sent me the hardship packet to fill out.