Consumer complaint received 2018-01-30
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (PA)

In XX/XX/XXXX I received from XXXX XXXX XXXX XXXX proceeds from an insurance settlement from my home. The Check was made payable to the insurance Adjusters who helped settle the claim, Fay Servicing and myself. Fay Servicing received the check on XX/XX/XXXX. I started inquiring about my insurance proceeds in XX/XX/XXXX and month after month was giving verbal instructions on what to do in order to get my insurance proceeds. In XXXX it was to send all receipts for repairs to the home which I did. Because I wanted to mitigate my damages, I had paid for repairs to my home from my savings. In XX/XX/XXXX I was told I had to get carpeting estimates. I asked who was going to pay for it and was told if I wanted my money, I would have to submit the estimate. I paid for the estimate. In XX/XX/XXXX I contacted Fay Servicing again, and was told that I should basically pay for the carpeting I explained that one does not have insurance just to be reimbursed and that carpeting is not like other contractor expenses that you hire someone to install carpeting and they wait to be paid. I stated I needed the proceeds to continue and that I had already put more money into my home than I was receiving from the insurance company. In XX/XX/XXXX I was informed that Fay Servicing would have to send an inspector out for the damage. So in order for this to be done, I took the day off of work. Inspector agreed that all repairs to the home were completed except for new carpeting. Once again Fay Servicing held on to proceeds. In XX/XX/XXXX I notified Fay Servicing that I was putting my money into escrow. Informed Fay Servicing of the savings account number and what branch of my bank it was held. Stated that until my insurance money was received, I would put my funds into escrow. This went on month after month until XXXX when I received my insurance funds. However, when I asked Fay Servicing about interest on these funds, I was informed that Fay Servicing does not have to pay interest. So I sent Fay a check for the funds I held. The check was returned to me stating that Foreclosure proceedings had begun and in order to stop it I would have to pay the whole owed balance which included late fees and attorney fees. I reviewed the amount that Fay Servicing was requesting. It seems that Fay Servicing did not pay the taxes on the property for years XX/XX/XXXX and XX/XX/XXXX until XX/XX/XXXX. Therefore, when Fay Servicing paid my taxes that were escrowed at XXXX per year, XXXX XXXX had to pay for XXXX {$6500.00} and for XX/XX/XXXX {$5500.00}. Fay servicing passed the increase due to their error on to me. When I tried to contact Fay Servicing Attorney on this, I was told to contact Fay Servicing Directly. Fay Servicing first denied that the reason for my mortgage increase from XXXX per month to XXXX was due to their error. However, I sent to them proof of the payment which is attached. Fay Servicing has now informed me that I can lose my home unless I pay the total balance and has put this on my credit. This situation has caused me undue stress and I would like to stop. All though all of this I have requested From Fay Servicing something in writing, however Fay Servicing continues to send to me unsigned documents.