Consumer complaint received 2016-09-09
Product: Mortgage — Conventional fixed mortgage
Issue: Settlement process and costs — 
Company: MORTGAGE AMERICA, INC (PA)

XXXX XXXX, XXXX Consumer Financial Protection Bureau XXXX, IA XXXX Re : Real Estate Closing Cost listed on The HUD 1 Dear Sir or Madam : I am enclosing for your review copy of the HUD-1 statement on the settlement of our home on XXXX XXXX, XXXX. This is fully executed statement signed by the borrower 's XXXX and XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXX , along with seller XXXX a XXXX . 

As you will ascertain from the enclosed HUD-1, we was respectfully billed as follows XXXX. City/Town Taxes for the period of XXXX/XXXX/XXXX - XXXX/XXXX/XXXX. {$21.00} XXXX. School Taxes for the period of XXXX {$150.00} The above taxes were listed on the HUD-1 statement in the normal fashion with no caveat or special assessment exceptions. On or around the second week of XXXX of XXXX, I received the enclosed tax bills from the XXXX XXXX. 
1 ). XXXX XXXX in the amount of {$530.00} ( for coverage period of XXXX. ) 2 ). XXXX XXXX In the amount of {$4500.00} ( for the tax period of XXXX/XXXX/XXXX to XXXX/XXXX/XXXX I contacted the Settlement Agent regarding these unpaid taxes and their statement was " it was an interim tax bill ''. ( interim to what? ) I proceeded to contact the XXXX XXXX Collector XXXX XXXX XXXX. XXXX XXXX XXXX XXXX, and his statement to me was " You did n't really think that the tax bill was only {$180.00} ''. I stated " that I did indeed, since that was what was disclosed on the HUD -1 and signed ''. We have previously closed on XXXX XXXX XXXX in Pennsylvania and have never seen this practice before. I even contacted the XXXX XXXX Tax Office and they stated, these taxes are to be on the HUD-1, which is a normal practice for disclosure. This was not just an interim tax bill. 




XXXX We were not the first house in this development to be sold, we were probably the XXXX house. This house was also previously under contract to be sold on XXXX XXXX, so the taxes due should have been complied then. I do believe that the homes in XXXX XXXX, started selling and going to closing in XXXX too XXXX ; so there was more than enough historical data to form the basis of a tax estimate. What seems to be more apparent is the fact that when questioned ; the seller was aware of the taxes due ( this would have been included in a preliminary report to the township for zoning approval for the development ). The Settlement Agent was aware of the taxes ( because when I called and questioned this practice, they already had prior knowledge of it. ) The XXXX was aware of the taxes due, because remember ( you did n't really think that the taxes were only {$180.00} ). The Mortgage Company had the taxes due, because they included this on their escrow analysis to us. It appears that the only people that were not aware of the hidden fees, charges or taxes were buyers XXXX and Myself. And why the non-disclosure? 

I am questioning the legality of this practice. I am of the understanding that all fees, taxes, charges, liabilities, regarding the transfer of real property are under strict disclosure guidelines, and any and all charges are to be disclosed on the HUD - 1. ( whatever happen to an estimated figure, the mortgage company had one ) We now had total of {$5000.00} in tax bills, that where due within less than sixty days. In my opinion this could gravely impact any mortgagor 's ability to pay the mortgagee. As a matter of reference, the HUD-1 states these taxes per paid through XXXX XXXX, XXXX. So does that now indicate that I am due a refund? 


Sincerely XXXX XXXX XXXX.