Consumer complaint received 2015-07-17 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: Seterus, Inc.
State: WA

Complaint narrative:
XX/XX/XXXXOn XX/XX/XXXX, my mortgage was transferred to Seterus, Inc. from XXXX. I was at that time one payment delinquent of {$1900.00}. Seterus reps told me I could make periodic payments whenever I had extra money and they would place the payments in a suspense account and once the payments accrued to {$1900.00}, they would apply that toward the delinquent payment and I would be current. I have been making payments on time for two and a half years but have n't been able to accrue enough money to make a whole payment that would bring me current. 
On or about XXXX XXXX, XXXX, I talked to a XXXX XXXX who checked with her supervisor XXXX XXXX ( not sure of spelling ), and they confirmed I had a little over {$1700.00} in the suspense account and that it was a mistake to have taken the money out of that to apply toward late fees. After consulting with her supervisor ( XXXX ) XXXX said I would be current if I made a payment of {$2200.00} in XX/XX/XXXX. They received this payment on XXXX XXXX, XXXX. This extra amount I thought ( from {$1900.00} XXXX was for taxes for which they established an escrow account, even though I was on a payment plan for XX/XX/XXXX delinquent taxes and was current with this year 's taxes. 
Today, XXXX XXXX, XXXX, I called to make sure my understanding was correct. First, I talked to XXXX XXXX. Later, I talked to XXXX XXXX and was told by XXXX XXXX that my money in suspense was used to pay late fees and that they had a right to take that money from suspense to pay the fees. They had months ago agreed that I could make partial payments and would apply them to the mortgage principal and interest once I had the entire amount due of {$1900.00}. XXXX XXXX informed me that because they did n't have a letter in writing directing my periodic payments be applied toward the delinquent mortgage, that they had the right to take the money and apply it to late fees. 
This company ( and Citimortgage and others ) uses these methods to keep people delinquent, forcing some homeowners into foreclosure. I believe this why they do this. If you do n't believe me, please go to XXXX and type in mortgage servicers and read the XXXX ( or XXXX ) of complaints. 
I think this behavior on the part of Seterus was fraudulent and I would like someone from your office to look into it. They treat hundreds of others the same way ( and worse ) in that they refuse to accept payments, apply money to late fees or other accounts without permission, and so forth. 
My mortgage records are under XXXX and XXXX XXXX ( or XXXX XXXX XXXX ). My husband died XX/XX/XXXX, but they wo n't take his name off the documents. I now go by XXXX XXXX XXXX. 
They also forced me into an escrow account for property taxes, and raised the amount to include higher taxes EXPECTED NEXT YEAR. They also said there was a deficiency, which I do not understand. My mortgage adjusts in XX/XX/XXXX and I would like to refinance or apply for HARP but because of my delinquency, they say I do not qualify. The delinquent payment would have been paid by now had they not taken the money for late fees. Is this legal? I want another servicer. A company that will not treat me this way.

Company response to consumer: Closed with explanation