Consumer complaint received 2015-11-30
Product: Mortgage — Conventional fixed mortgage
Issue: Loan servicing, payments, escrow account — 
Company: Ditech Financial LLC (IL)

We had submitted a previous complaint about Ditech Financial. They responded, but Ditech Financial was erroneous in their response and again we believe we have been a victim of illegal business practices by Ditech Financial and are requesting assistance from CFPB. We had requested that an Escrow Account NOT be applied to our mortgage. Ditech said that under the Illinois Law, XXXX XXXX requires that an Escrow Account be attached to an account if taxes are late or delinquent. We contacted XXXX XXXX, and they said this was NOT true. Initiation of an Escrow Account for late taxes, " is at the discretion of the company/Ditech ''. We were customers in good standing, and Ditech refused this request, even after we paid our taxes in full and produced documentation. We requested in XXXX, XXXX, XXXX and XXXX for them to contact the XXXX County Treasurers office to retrieve their unapplied tax check, but they have refused to do this. They stated they sent a tax check in XXXX two weeks before we paid our taxes, and this is also erroneous. The enclosed documentation clearly collaborates that our tax bill was paid by us on XXXX/XXXX/15, and that Ditech 's check was received on XXXX XXXX, 2015 - two weeks AFTER our taxes were already paid. Their check has remained there since that date. My husband visited the XXXX County Treasurer 's Office, and as of XXXX XXXX, 2015, Ditech Financial had never contacted or requested that the check be returned. Instead, they have held our account hostage. They will not close out the account because they are " waiting for the check to be returned '', yet they have not requested it. This is not our problem, it is an internal problem within the company, and we should not be penalized. Since XXXX, we have written, called, faxed this company over and over asking them, telling them to get their check back from the XXXX County Treasurers Office, but they refused. Another error -- Ditech claims that they sent an additional check for the first installment of our tax bill, but this is an out and out fallacy which can be collaborated by the XXXX County Treasurers Office. The truth is that this first tax check was never sent or applied to our account, and on XXXX XXXX, 2015 this amount mysteriously was credited to our account. Sloppy record keeping and erroneous statements made by this company need to be addressed. We are asking CFPB contact Ditech Financial and request that our account be closed. It is THEIR responsibility to obtain their unapplied tax check that has been sitting idly at the XXXX County Treasurers Office since XXXX 2015. Ditech Financial is now telling us that we will have to wait until they receive the check back from the XXXX County Treasurers Office before our account can be closed, which could be 8-10 weeks! This is unacceptable. The Escrow Account did not have to be opened, as they implied. Ditech refused our requests to stop the Escrow Account, and then they mismanaged their own monies and our monies. Our taxes were paid in full by us. Their unapplied tax check should have been retrieved in XXXX 2015. It is now almost XXXX 2015. We are requesting that CFPB contact Ditech Financial, and request that this account be closed as it should have been in XXXX 2015. We sent the principal balance payment of {$31000.00} to Ditech on XXXX/XXXX/15 requesting that they close the account. Instead, they refused, stating that the Escrow funds needed to be retrieved which they have refused to do. This company has a history of fraudulent behavior and this is a further example of it. We need your help.