Consumer complaint received 2023-11-03
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — Fees or costs after closing
Company: KEYCORP (NJ)

- I chose Key Bank as my mortgage lender to close on a house in New Jersey in XXXX of XXXX. I paid them {$550.00} for an appraisal fee, {$590.00} application fee and numerous other miscellaneous charges prior to closing and/or in XX/XX/XXXX. It was discovered at the closing table that the property I was buying had an additional lot and that lot was located in a different town. So now I had to pay additional taxes on top of my township taxes to a completely different town. That is something that should have been discovered prior to the closing table. 

- Key Bank stated that my escrow payment per month was going to be approximately {$1000.00} ; however it was later determined that my actual payment should have been {$1200.00} ( {$1300.00} if you include the other towns taxes discovered at closing table ). This gross miscalculation was caused by Key Bank using the estimated taxes from the house that I was moving from and not using the estimated taxes for the house that I moving too. This was admitted in writing by Key Bank and completely dismissed by multiple representatives when I tried to bring up the situation on the phone. So Key Banks estimation of my taxes was so far off that it caused me to have a {$4700.00} shortage as of XX/XX/XXXX and I had only lived in the house for a year. The estimated taxes that Key Bank calculated would not have even satisfied XXXX taxes ( XXXX years prior to me ) in my new house. So my mortgage payment as a whole went up over {$740.00} per month and again this was all within a one year span. To sum it up, I was already going to be short on my yearly taxes {$260.00} each month from my very first payment in XXXX of XXXX. 

- Through all the hours/days/weeks on the phone with Key Bank, all the emails back forth with the escrow department, I found out that Key Bank did not pay my 4th quarter taxes in XXXX. I had a tax lien put against me and it went out for tax sale. I was never notified of any such thing until I discovered it in XXXX of XXXX by calling my XXXX XXXX XXXX. I had a tax lien put against me because Key Bank failed to pay my XXXX quarter taxes in XXXX and they never even had the decently to contact me about it. Therefore, they pulled tax payments XXXX of XXXX, XXXX of XXXX and XXXX of XXXX which depleted my escrow account ( one of them being to satisfy the taxes for the lien ). On top of that, I had to spend hours on the phone to determine if I was assessed any fees, penalties, damage to my credit, etc because I had a tax lien put against me and was never notified. I was told by Key Bank that they incurred the cost of all the fees/penalties ; however, after everything that has happened to me recently with them, I take that with a grain of salt. 

- I have contacted Key Bank no less than 30 times since I received my XX/XX/XXXX statement which showed the significant increase in my mortgage payment. Just to reiterate, I bought my house in XX/XX/XXXX and I did not find out any of this until I received my XX/XX/XXXX statement. Key Bank has taken no accountability for their actions, I have been dragged through the mud on the phone with them, talking to the escrow department, escalation teams, their corporate office and I havent been compensated one cent for this debacle. I paid them thousands of dollars for their due diligence prior to closing, at closing and since closing. I feel that if you pay a company for a service and they do not perform that service properly, you should be reimbursed or compensated for their egregious errors and negligence.