Consumer complaint received 2024-07-13
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Escrow, taxes, or insurance
Company: FIFTH THIRD FINANCIAL CORPORATION (IN)

On XX/XX/XXXX I was approved for a XXXX month forbearance on my conventional non-escrow mortgage with Fifth Third. I wasnt able to pay the XXXX payment and asked either customer service or the loan solutions department if I needed to pay it immediately. They told me since my forbearance for XXXX was already approved, I wouldnt be penalized as long as the outstanding balance including XXXX was paid after the forbearance ended. The letter stated the forbearance would end on XX/XX/XXXX, but on the second page listed XX/XX/XXXX under the amount due column {$0.00}. The outstanding balance was paid in full and posted on XX/XX/XXXX including XXXX & XXXX payment. During the forbearance I was charged XXXX property inspection fees of {$30.00} each, dated XX/XX/XXXX and XX/XX/XXXX. The loan solutions department ( forbearance ) said those fees should have been credited by customer service after the outstanding balance was paid. Customer service says the loan solutions department has to credit those fees. On XX/XX/XXXX, I paid my property taxes prior to the due date. Fifth Third paid my property taxes on XX/XX/XXXX and reimbursed by the county on XX/XX/XXXX. The transactions were listed on my XXXX statement, but I didnt notice them since I had an no escrow account. I regretfully accepted another XXXX  month forbearance starting XX/XX/XXXX through XX/XX/XXXX. Again received letters threatening foreclosure and billed another property inspection fee. The outstanding balance was posted on XX/XX/XXXX including XXXX payment. XXXX XXXX payments made each month on time. On XX/XX/XXXX Fifth Third paid my property taxes and created a negative escrow balance on my non-escrow mortgage. I paid my property taxes on XX/XX/XXXX to the county prior to the XX/XX/XXXX due date, as I have every year for the last XXXX  years. The county will not reimburse me nor Fifth Third because the second payment was applied to my fall taxes. In XXXX I received a letter dated XX/XX/XXXX stating my insurance would be expiring soon ( XX/XX/XXXX ) and they havent been able to get a renewal statement from the insurance company. I received another letter dated XX/XX/XXXX with an escrow analysis stating my new monthly payment starting XX/XX/XXXX would be {$1200.00}, instead of {$670.00} the same amount Ive paid since they purchased my loan in XXXX. I contacted Fifth Third on XX/XX/XXXX to find out why they paid my property taxes and insurance. No one could give me an answer. I realized the situation when I attempted to pay my insurance directly to my insurance company and discovered not only a XXXX balance but an overpayment of {$160.00}. Fifth Third paid the higher amount of {$1500.00} on my insurance bill instead of the pay in full amount of {$1300.00}. I believe they did this to inflate a monthly escrow payment. On XX/XX/XXXX after my insurance agent spoke with the insurance company, I paid {$1500.00} to Fifth Third for my insurance. Fifth Thirds only solution to this ridiculous situation is to reimburse them {$1200.00} for my property taxes that were applied to the fall payment thats not due until XX/XX/XXXX and REQUEST the escrow removed from my account. Or I can pay {$1200.00} per month. Keep in mind Ive already paid my spring taxes and reimbursed Fifth Third for my insurance. Ive researched and found that they cant legally setup an escrow unless Im delinquent on my taxes or insurance. The only amount that has remained unpaid are the property inspection fees totaling {$67.00} and a {$33.00} late fee that was credited on XX/XX/XXXX. Adding an escrow account was not a condition of the forbearance. My opinion is that Fifth Third exploited my hardship because my property value is more than double the loan amount, my interest rate is about 60 % lower than todays average interest rate and no monthly escrow for them to invest/make extra money. On top of everything on their escrow analysis they calculated a required escrow balance of {$850.00} which includes the 1/6 max cushion of {$560.00}. In summary, after informing Fifth Third in my XXXX XX/XX/XXXX hardship application that Ive remained unemployed due to XXXX from XXXX XXXXXXXX, Ive been billed property inspection & late fees, received letters with contradictory due dates ( within the same letter ), multiple letters threatening foreclosure during the forbearance period and the burden of either paying fall property taxes 4 months early and requesting an escrow removed that ( I believe ) was added illegally. Please help!