Consumer complaint received 2015-05-18 00:00:00
Product: Mortgage — Conventional adjustable mortgage (ARM)
Issue: Loan servicing, payments, escrow account — 
Company: Ditech Financial LLC
State: CO

Complaint narrative:
XXXX is the case number involving a complaint in which an escrow shortage pertaining specifically to homeowners insurance arose just after my husband and I contacted XXXX XXXX in XXXX, XXXX Our agent, XXXX XXXX initiated a conference call with our mortgage company Greentree Servicing LLC , who purchased our loan from XXXX XXXX XXXX . We had always escrowed our taxes and insurance in every loan we ever had, and the call was to set this up and have the lender placed insurance removed and XXXX XXXX added. We were about to save money and were convinced that the XXXX companies had done what we were asking them to do. We began making our new payment, which was still more than the payment we had when we modified our loan with XXXX XXXX XXXX in 2012, a fixed rate at 2 % for five years. We heard nothing until 4 months later, XXXX XXXX sent us a notice saying that we owed {$420.00} because Greentree had not paid them. The purpose of the call was to set up the insurance escrow with XXXX XXXX, so we were at a loss to understand why it had not been and where the money we sent Greentree went. Greentree gave us no answers, so we proceeded to use a new insurance company associated with XXXX, who insured our automobile. That company was XXXX. Our insurance was going to cost more, but we knew we were aware of XXXX 's excellent reputation. We began making a higher payment after finally getting noticed by XXXX that Greentree was paying them. This took longer than it should have, and we received several inquiries from XXXX alerting us that they were still waiting for monies to be distributed. We were a bit irritated that Greentree fumbled a few times in getting this right as well, but again, we felt convinced that the account was being handled the way we expected. Not too long after that, we were told by Greentree that an escrow " shortage '' had developed and that we were required to pay an additional {$140.00} over 16 months to make up for the " shortage, '' which had developed EVEN THOUGH we were making a HIGHER payment than the loan terms dictated. We are convinced that the money was being collected in XXXX department and shoveled somewhere else. In the meantime, getting no satisfaction from Greentree, we called XXXX and told them we wanted to remove the escrow and pay the insurance ourselves. We were told to call Greentree. We called and told them we wanted to pay taxes and insurance ourselves, but they said we could not without addressing the " shortage, '' which should have been a surplus based on the fact that our payment never went below the amount Greentree told us to pay when the loan was sold by XXXX XXXX XXXX. Being thoroughly displeased with Greentree and distrustful of them, we made XXXX individual payments of {$530.00} covering principal and interest. Our representative with Greentree, in fact, had instructed us to pay this amount XXXX time previous to this. Only a month ago, an unnamed paralegal from Greentree sent us notice of default with intent to cure, saying we were XXXX months behind. We believe this is criminal and that our loan is being deliberately sabotaged by Greentree while they avoid addressing the issue we addressed in filing the complaint cited in Case # XXXX. We are afraid of being displaced from our home. Meanwhile, Greentree continues sending encouraging us to call their loss mitigation department. We are tired of being victimized and do n't know what else to do except contact an attorney.

Company response to consumer: Closed with explanation