Consumer complaint received 2016-01-31
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: PHH Mortgage Services Corporation (MI)

PHH, from XXXX, NJ has been our mortgage company since XXXX. We have never made a late payment nor missed a payment. In XXXX we refinanced with them to get the HARP rates. All was fine until early XXXX XXXX. We started receiving calls from foreign reps saying we were behind on our payments and they were willing to take a " courtesy '' payment over the phone. We knew we were n't behind and thought it was a scam, but then we started getting notices in the mail that we were in default of our loan.. I called and after a very confusing conversation with a foreign person I had a hard time understanding, was told we were {$73.00} short in our escrow account for our taxes. We did not think this was accurate, but immediately sent in the extra money, which they received on XXXX We thought that would be the end of the problem, but the calls and letters have continued. I went to their website to check our account acitivity, and also checked our online banking, to make sure all payments were made and received by this company. They were, all received appx 8-10 days before the due date, which is always on the XXXX of the month. Once I checked on our account activity, I realized that they had taken the payment they received on XXXX and applied it to the XXXX payment, despite the fact that they had already recieved that payment on XXXX XXXX, XXXX I have now pointed this out to every rep that has called, they look at it, agree with me that the mistake is theirs and tell me they have put in a " request '' to fix the error.. But no one is fixing this error.. We are now receiving notices that a late fee has been added to our account. I have sent this company every copy of documentation I can think of proving that we have never made a late payment, nor missed a payment, and the mistake is theirs, not ours.. I have also contacted them by email to tell them the late fees added to our account is incorrect and needs to be removed, sending them information on where the problem occured ( with the payment they received on XXXX ). Today I received a letter by mail informing me that after " carefully reviewing our account, they have determine the late fee was added correctly '' .. How can a mortgage company be this inept? After about 4 weeks of dealing with them, being told they will fix the problem over and over again only to then receive more calls and letters, we are not only stressed out, but seriously concerned about where this is headed.. There are hundreds of complaints about this company online, stories very similar to ours, with people being forced into foreclosure ... We are a senior couple and have never dealt with such an inept mortgage company in our lives! On top of all this craziness, it appears we did n't even have an escrow shortage to begin with. This company paid our winter taxes on XXXX/XXXX/XXXX but they were not due until XXXX..They paid our summer taxes just 4 months prior, so it is n't that they pay taxes early on a regular basis.. Our taxes are due 6 months apart.. If they had paid them when they were due, there would have been more than enough money in our escrow account to pay them. It appears to us that this company purposely paid our taxes early in order to create this situation, where they are now telling us we are late on our payments and threatening us with default of our loan. We want this straightened out ASAP before this company destroys our excellent credit rating, which we have worked hard to maintain our entire lives! Not to mention we just simply are tired of the harrassment and stress.