Mortgage Servicing Fraud
occurs post loan origination when mortgage servicers use false statements and book-keeping entries, fabricated assignments, forged signatures and utter counterfeit intangible Notes to take a homeowner's property and equity.
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I have had an escrow account for 7 years with Chase Manhattan aka Chase Home Finance, LLC.
On December 14, 2007 I received a copy of an unpaid MUD tax bill.  The bill was successfully faxed to Chase Home Finance.
I was told by a Chase supervisor that a single check was mailed via DHL to Chimney Hill MUD on 1-09-08.
The Chase website indicates that Harris County taxes were paid 12-21-07, Chimney Hill MUD 1-9-08, and Cy-Fair School taxes paid on 12-28-07.
On January 19, 2008, I received notice from Harris County Tax Assessor that as of 1-18-08 no payment has been received.  I was informed that I was responsible for payment of taxes.
I checked all taxing authority websites, and to my amazement, the CHIMNEY HILL MUD taxes have yet to be paid along with Harris County and Cy-Fair, ALL REFLECTING NON PAYMENT as of 1-18-08.
I cannot fathom why Chase Home Finance, LLC is NOT paying the taxes in a timely manner, when the prior 6 years, the taxes and insurance were paid before penalties and interest were assessed. Now all of a sudden 2007 taxes are NOT PAID from an escrow account holding $5000.
The escrow account reflects a decrease as IF the taxes had been paid, but the taxing entities have NOT received monies due.
I have written a qualified written request letter to Chase, citing Respa sections, with copies to HUD, Texas AG, FTC, OTS, OCC, BBB, all to NO AVAIL.
Is my only choice now to pay the taxes and then file a lawsuit for fiduciary irresponsibility, breach of contract, and deceptive practices?

Thanking you in advance for your help and assistance.

Sincerely,
Kathey
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It appears you have done everything correctly.  Did you send your QWR letter via Certified Mail – Return Receipt Requested?  If not, then maybe you should just so you have proof positive that it was sent and Chase was formally notified of the error.  Remember – it is impossible to prove after the fact that a telephone conversation ever took place.

 

Remember, they have 20-days to acknowledge a QWR and 60-days to respond.

 

It seems a little premature for litigation and I would doubt that your county will sell the tax certificate in a tax sale this early on.

 

Hope this helps

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Joe B
Kathey-

     Right now, you have evidence of something as small as a possible misunderstanding, to something as large as the beginning of Mortgage Servicing Fraud. Since you have been plodding along nicely for many years, I would not be so quick to rush to judge anything untoward with your payments, but I WOULD prepare just in case.

     So, as WTG pointed out, you certainly should ensure your letter(s) is/was received. As far as your phone call(s), there is certainly nothing wrong with an initial inquiry on something that seems unusual. However, I would take the second step of memorializing the conversation. In other words, I would send an additional letter to Chase outlining the details of the conversation, including names and times of the call, in addition to the careful specifics of the conversation. Moving forward, I would only resort to the phone as a last resort. There is nothing going on here that cannot be done in writing. If there is something wrong happening, it is far harder to deny the properly signed-for letter from you. On the other hand, phone calls are simply to deny; if not the call, certainly the specifics of that call!

     Next, if you have a lawyer-friend (these are often incongruous), it might be time to spend a few minutes in a phone call for advice. Again, this may be nothing more than Chase putting the wrong information on the check(s), or the tax authorities mis-applying your payment. I would SERIOUSLY consider whether or not your contract allows for you to pay these taxes yourself, and relieve Chase of this responsibility! Regardless of how this turns out, you may decide that it is far more prudent to take care of your tax obligations yourself. As you now know, the taxing authority will come after YOU, not your servicer, regardless of your arrangement with them!

     Now, I would also get print-out from each of the taxing authorities. I would also get a confirmation of the account status in writing; simply send a letter of inquiry to determine the current status of the account. I would also print-out what the Chase website says about your account, including any check-specific information. In other words, see if they confirm a check date and check number of the alleged payments; I doubt it, but maybe it exists.

     I would also begin gathering necessary information in case you have a fight on your hands. In the happy event that your money is sitting in someone else's account, and the mix-up is of no financial penalty to you, you waste a few hours of your time. In the event that there is something more sinister, you will have begun a proper documentation and paper trail of your problem for the next phase.

     In the interim, PLEASE closely monitor your payments to Chase. Check their website for payment posting date, check your interest statement for your 2007 taxes (you should have this now, or very soon),your regular monthly statements, and other important indicators of shenanigans. If you see additional signs of problems, document, document, and document again. Get a lawyer early, and keep her abreast of the status, and let us know if we can help.

     Let us know if there is anything else we can do.

JB
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Very good advice on this problem.

Personally, I like the suicide squeeze method at this juncture.

You really don't know what happened yet.

Compose a letter to both tax authoritties if they are different that they
have advised you they have not received payment for $$$$$ and dates
that remain unpaid.

cc: to Chase 

Compose a letter to Chase.  Re:  Unpaid taxes from escrow

The tax authority (insert name or names) has informed me the tax
bill describes remains unpaid to this date.

My conttract provides for an escrow account for taxes and or insurance.

My account shows the money from escrow was used for that purpose.

Please provide me with a check copy, both sides.

If you cannot provide me with a check copy, then pay the taxes and any
interest that you owe for not sending the check timely.  I should not
be responsible for any penalty.  I would like this to be complete in 20 days.

*whatever else you might want to say.

You have put them both on notice, they are responsible for the mixup whether deliberate or not and they should fix it.  Your responsibility in
this matter is to provide money into the escrow account which you have done.

It would seem either Chase can prove they wrote the check or the taxing
authority may have credited payment to someone else's tax account.

*************
Something like the above.  Action needs to be taken by both of them.
You cannot control what they do with their money responsibilities.

If it turns out Chase is responsible, you can write another RESPA letter
and cc it to the same people advising them when you actually know what happened or no proof exists either way.  Chase should pay and collect
if it is a duplicate payment.

If you want to send these letters certified receipt requested, that is okay
but also "note" copy or letter has been sent through regular mail.  Sometimes
it takes longer for them to receive a certiefied letter.  Why?  who knows?

I think it is a BS excuse again but you will have taken care of that excuse
before they get a chance to try and use it against you.

Good Luck.

Strike first is the best strategy.  Don't let them try to get away with default
because we all know that is the goal. 

Dee
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Maybe because they have been buying MGIC stock, over 1% of it on Friday!

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Dear Dee, Joe and WTG:

Thank you all very much for your replies.  I failed to send the Qualified Written Request letter via certified mail.  I will reprint the letter and mail certified return receipt.
In the letter, I did document dates and parties with which I spoke to on the phone as well as send copies of the successfully transmitted facsimilies.

At first, I was told that Chase received an "electronic bill" from Chimney Hill MUD with a zero balance on 12-19-07 and that they were within their rights to ignore my request to pay the taxes on 12-14-07.  Chimney Hill Mud denies this fact.  A copy of the electronic bill from Chimney Hill reflects the balance due.  Chimney Hill was the one who advised that no payment in any form whether electronic "batch" payments, single check payment or wire transfer payment attempts were ever made by Chase Home Finance, LLC.

Then, I was told in January 2008 (mind you that all previous taxes had been paid before 12-31 of the corresponding tax years), that all of a sudden my parcel was uncertifiable.  Then I was told that yes the parcel and account number are correct, but their research department had to find out why payment was not made.  And I was told that my account had a CODE "V", which no one seemed to know anything about, but was told payments could not be made on a CODE V.
I was flabbergasted when I received notice that my county taxes had yet to be paid as of 1-18-08.  And then checking all taxing authority websites and finding that NONE had been paid.

In my letter to Chase I also requested a new escrow analysis (last one was done in November 2007 which netted a $1,305.00 return payment).  I received notification from Chase that another check in the amount of $769.00 will be returned in February 2008 after a recent escrow analysis was performed due to my request.  I just don't understand how they could reflect payments as being "made" on my escrow analysis, if in fact, the taxing authorities have yet to be paid.

I truly appreciate the advise of printing the tax bills and sending Chase a letter with regards to each tax bill.  Thank you very, very much for the sample letter.
I will start making phone calls tomorrow morning with all taxing authorities as well as Chase.
If the taxing authorities have not been paid, then I will make the payments before interest and penalties are assessed.

This board is invaluable!!  My appreciation to the administrator and founder of this website!

Sincerely,
Kathey


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Kathey
Dear Gary:

Isn't MGIC a provider of private mortgage insurance?
Luckily, when I refinanced in 2003 for a fixed 5% interest rate I was able to prepay the mortgage insurance ($1,700).  My escrow payment does not include MI at this time.
Upon looking over the loan docs, though, is it true the YSP (mine was $3,890) a fee that is paid directly from the lender to the broker?
At closing, when I asked the closing agent what YSP meant on the HUD-1, she said not to worry about it, that we weren't being charged for this amount.  After searching several sites on Yield Spread Premium, it could either be a "bad" thing such as a higher interest rate, or a "good" thing such as low closing costs to the borrower.
Thanks,
Kathey

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noodles
Kathey,

I too have found this site invaluable. You've been given excellent advice so far.

However to this I would like to add.

You have spoken of a "CODE V". and their inabilities, to tell you what a "CODE V" stands for or means.

I have also had the same problem with "CODES" being asserted and assessed onto our account.

and have written a Q. W. R. asking them to Please Explain what each of the "CODES" used means. To this date they have still FAILED TO ANSWER! In that Q. W. R. I stated, that I needed to know what Each specific code was defined to mean, as there were MANY problems with our account that I was trying to RESOLVE.

I then stated that I would very much like and appreciate their help in providing me with a break down list of all of their codes, that I was specifically requesting, in order to help me keep a "PROPER" Accounting, of the loan.

**Their Failure to provide me with the codes on these errors, indicates that there is PURE NEGLIGENCE. 60 days have passed, and STILL NO RESPONSE. (I've had road blocks in pursing this matter, but am conquering them currently.)


Since it has been stated to you that a "CODE V" seems to be the reasons for the ACCOUNT TROUBLES, you will want to write a separate Q. W. R. also sent Certified Mail, ( I like the return Receipt, Signature Required method. I get a signature and a hard copy stating they received it. A total of $5.17 every letter sent)

In this letter you will explain to them what you were told about the "CODE V", who you spoke with, and how they didn't have the information available/didn't know.

You are now requesting information regarding the "CODE V" they have asserted on your account related to the (Zone?), since this has seemed to effect your account in a negative light.

You want to resolve the issues that are troubling this account as quickly as possible so a definition of "CODE V" is requested.

(anything else you want to add about "CODE V") and don't forget to state.

*Under RESPA Law you understand they have 20 days to acknowledge receipt of this letter.

Then add, time is of the essence.
hope this helps some.

You really want to know what this "CODE V" means, since it seems to be haunting your account. It could very well be, and probably is a CODE they will NOT want to share with you.
In the event not. Well, You've got your proof of their negligence, in wanting to help you resolve any issues at hand.
Related to this code.

You need to also send out another Q. W. R.
Requesting ALL "Account History Pages" from inception of the loan til current date, if you  don't already have one.
Again, hope this helps.




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Dear Noodles:

Thank you for the response.

I called the Harris County Tax Assessors' office but their office was closed today due to the holiday.  However, I received an email response from Ed at the Harris County Tax Assessors' Office and he advised that NO payment was received on my account and all payments have been posted as of 1-20-08.

I also received an email from Chimney Hill MUD stating that Chase is telling them that the parcel is "uncertifiable" again and to attempt a three-way conference call tomorrow between myself, Chase, and Chimney Hill MUD.  Rhonda at Chimney Hill Mud stated in her email that no payment has been received on the account and ALL payments have been posted.

I called Chase at 8AM and was told their computers were down and my message would be given to Valerie P. in the tax department to return my call.  She was the supervisor who advised that the Chimney Hill Mud payment was mailed overnight on 1-9-08.

I called again at 4:17 PM and the computers were still down.  I again left a message to have Valerie P. call me.

This is the same treatment as before, where you give your name, loan number and message only to have the "person" you request to call you back but NEVER does.

I have been reading message boards, complaint sites, etc that all deal with mortgage fraud.  I can't remember where, but it was stated on someones' site that when a tax lien is placed, the mortgage contract is technically in default, and mortgage companies buy properties at tax auctions for .25 to .40 cents on the dollar. Also, tax liens stay on a person's record for 7 years. 

Fortunately, I have the means of paying the taxes AGAIN.  I wonder about others who may not have the extra thousands or credit cards available to pay for the taxes even though the mortgage servicing company SHOULD have paid the taxes from funds in escrow.

I truly do not believe this is now a "mistake" of posting/applying payments to anothers account.  The responses from the Chase reps are always, "taxes aren't due until January 31, 2008.  Hmmm, wonder why this is the answer when clearly different states have bi-installments and different due dates.
This was the response I received when the person who said the computers were down and technically could not look up my loan or even see which state I resided in when calling about the taxes.

I will be sending further letters, this time certified mail.  My first QWR letter included a question about Code "V".   
I have printed the Chase Web page that reflects payment dates of "taxes" paid from Escrow.  I have copies of all tax bills.  I have copies of emails from Harris County and Chimney Hill MUD stating as of 1-20-08, no payments have been made. 

A kind lady from another website gave me a telephone number and email address of someone at HUD that handles RESPA complaints. 

I need to look through this website for the email of the Chase media consultant.
I have the physical address of the CEO and Chairman at Chase.  Someone higher up definitely needs to be made aware of the type of service received by Chase representatives.

Thank you again Noodles for your input and help!
Sincerely,
Kathey
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     Recently, I got a year end statement from Ocwen indicating that they
applied my 2006 tax payment to principal and interest. I immediately checked
with the tax collector and discovered that my taxes had indeed been paid
for 2006. Apparently they are so screwed up that one part of the organ-
ization does not know what the other departments are doing. The deficit
in my tax escrow account is apparently being used to charge me late
fees and to screw up my credit because Ocwen is telling Equifax I am
60 days late, which I am not. Luckily, this Friday, I will be leaving the
nightmare of Ocwen behind me by refinancing. I sure hope I don't wind
up with them again on the new loan.

     With regard to your problem, it is probably just a routine screw up.
In any case, you have plenty of time to sort it out before the County
will send it to tax foreclosure.
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Kathey
Hi Mike:

I'm so sorry for your troubles with Ocwen.  After reading the reports on http://www.ripoffreport.com I wouldn't wish that company on my worst enemy.

Well, I was lucky to speak with the same supervisor that had said the payment to Chimney Hill MUD was overnighted by DHL on 1-9-08.
I advised her that I received emails from Harris County and Chimney Hill MUD advising payments have not been received.  I advised her that the school taxes had not been paid as well.  She seemed genuinely suprised.
She gave me the check numbers and then searched her system to see if they had cleared.
She advised that no checks had cleared as of today, 1-22-08, and could not offer an explanation as to why the checks have not been processed.  She gave me the DHL tracking number and advised that the check had been returned to sender (First American Real Estate) on 1-15-08.
She advised that the "inexplicable" code V had been removed, and no exit code was on my account  She said she would call each taxing authority and call me back.  I will call her tomorrow.
I went to the DHL website and reviewed the overnight package.
First American Real Estate (the mortgage servicing arm of Chase Home Finance, LLC) sent the CHIMNEY HILL MUD payment to a misspelled STREET and referenced T/H (townhouse) in Houston, TX 77084. Isn't this insane that a mortgage servicing company would try to send a check to pay taxes to a TOWNHOUSE??  And to send the package without a complete address (no numbers prefixed the street name)!  The address and zip code is not even close to Chimney Hill MUDs' (Assessments of the Southwest) physical address location in Friendswood, TX.
I read Standard and Poors' recent evaluation "strong" ranking on Chase Home Finance, LLC and the "glowing remarks" about their new servicer, First American Real Estate, increased and "experienced" staff in the property department, ad nauseum...
I think Standard and Poor needs to re-evaluate their report!
Hope your refinancing went well Mike!
Sincerely,
Kathey


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She shoots, she scores!!!!!

Now you know what happened.  You have the facts.

I would consider sending a letter to the servicer advising them
what you found.

Memorialize this error or whatever you want to call it.

I am sure you are aware just how ugly this could have been for you if you hadn't done all that work to hold them accountable.

Nice work on the suicide squeeze.

You cannot predict what they will do in the future but they know what you will do.

On the v thing, I think a letter requesting a copy of the key code (Ithink that is what it is called). used on their accounting program.

Eventhough the v has been removed from your account, you'd still want
to know what they tried to accomplish with that designation.

One thing I like is to see borrower's keep track of these mistakes (cough)
and present a running list of these errors in any correspondence to them
on future errors.

Such as in my own struggle:  You have misapplied payments 16 of the
last 18 payments.

You have assessed late fees where none are due 10 of the last 16
payments.

You have failed to make my tax payment timely because you used
an erroroneous  address for calendar year 2007 taxes.

And whatever else they have done.  This also alerts anyone else that
receives a copy of your letter.  Keeps them focused on the number
of errors. 

Being a bit snarky, I also added on to my letters.  Servicer errors 16.
Borrower errors 0.

My proof is complete.  I don't believe in clerical errors anymore.

Dee



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Kathey
All taxes have been paid as of 1-31-08.
I just wanted to say thank you again for the advice given on this board.
Sincerely,
Kathey
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noodles
Kathey,
Did you ever send out a QWR requesting info on the "CODE V"?

If so, have you received response yet?
If you have what was their answer?

"IF" you have not sent that QWR out, YOU STILL NEED TO!

I am glad your taxes are now paid, and you have reported no other problems to us.

But I would not sit back comfortably thinking, "Ha! Ha! They wont mess with me, anymore cause I showed them who's the boss!"

They tried to clench their teeth on you. It is possible they will try it again.

You want to create the paper trail, in the event you have other problems surface.

and you STILL want to know what a COVE V is, since it caused problems for you in the first place.

if they fail to reposnd, to your "CODE V" QWR .... well then you're already gotten the mandatory paper trail started, and can provide proof of their negligence, if you need to pursue your Mortgage Servicing issues further.

Glad you were able to resolve the property tax probs.

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Kathey
Hi Noodles:

The first QWR asked for an explanation of the "inexplicable" code V.

I haven't written another letter yet, but I will.  I never did receive a written response to the first QWR (sent on 1-10-08) over 20 days ago.

I will inquire as to why two of taxes were reported to be paid in 2007, and clearly none of taxes were paid until 2008.

I received this email from Harris County:
They did not mail the check to Harris County. They in fact mailed it to a local tax servicing company called First American Tax Service, which brought the payment into our office on Wednesday 1-23-2008 and we posted the payment on 1-24-2008.
The payment was receipted for January 2008.
 
I was unable to declare all three taxes on my 2007 income tax form.  Their 1099 form only declared school and county taxes paid in 2007 when IN FACT they weren't paid until late January 2008.
 
The above information will be in my next QWR. 
 
I don't think for one moment that things will ever be the same with this mortgage servicing company.  I will probably see an increase in escrow due to their having shown paying MUD taxes in January 2008, and payment will be due again in December 2008.
I will have to pay close attention to the escrow analysis next year.
 
Thank you for your help Noodles.
Sincerely,
Kathey
 
 
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noodles
After all this time, they still send the taxes to the wrong address. Hmmm.... Even after they've received the correct addy for the tax office??!!

Yeah they are not done trying to mess with you!

Thankfully the tax acct. office took their payment to your tax office, or you'd still be messing with this ordeal.
That's what they wanted. They never expected, that check to be hand delivered. L.M.B.O.


About your taxes, and the reporting of them.
You might want to highly consider, CCing a copy of your Next QWR to the IRS.

Their false tax reporting has caused you problems. If you include the IRS, in the mailing of QWR, that would "show" "tell" "prove" to the IRS that you want to do what is right where taxes are concerned, but were or are unable due to the frauds committed by your servicer.

Others here have different opinions about the matter. But I'd rather have it documented to the IRS; than not. Either way you've got a problem, due to the SERVICER FRAUDS.
You probably should be speaking with a Tax professional Soon.

Good Luck!





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Kathey
Dear Noodles:

Your words, "Yeah they are not done trying to mess with you!" have now become prophetic.

My homeowners' renewal policy was not paid.  My statement and Chase website state $1,424.00 was paid on October 6, 2008.

My homeowners insurance policy expires Monday, October 27, 2008 at 12:01 AM.
I received two past due notices from American Mercury.  When I checked the Chase website and HO payment was made on 10-6-08, I just "assumed" the bill and check has crossed in the mail.

Well, on Saturday, October 25, 2008 at 5:35 PM, I called American Mercury and was advised that NO PAYMENT had been received for the renewal policy.
Of course, this meant that if I didn't make payment, coverage would have lapsed as of October 27, 2008 at 12:01 AM.
I PAID the homeowners renewal insurance premium on my CHASE VISA on Saturday, October 25, 2008 at 5:35 PM. 

Come Monday, October 27, 2008, it will again entail phone calls to Chase Home Finance.  I wonder what their excuse will be this time.

When I realized in December of 2007 that Chase Home Finance was not paying the property taxes, their litany of excuses, including the "inexplicable code V", or that they alleged they received an electronic bill from Chimney Hill Mud with a "zero" balance (Chimney Hill Mud refuted this by the way), just makes me realize even more that these are not "inadvertent" errors.

Mortgage Servicing Fraud is alive and well. 

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No Phone Calls
STAY OFF OF THE PHONE!!!!

Write those RESPA letters.

Make it CLEAR that you mean business by keeping a detailed PAPER TRAIL!
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Kathey
I must give Kudos when they are well deserved.  Tequila at Chase needs to be recognized for her outstanding customer service on this one!
I called Tequila @ Chase and she advised payment was mailed to American Mercury on 10-6-08, and Chase "batch" check was received and endorsed on 10-24-08.
She did a conference call to American Mercury billing department who advised once again that no monies from Chase had been posted.
She faxed proof of the "endorsed" check to my office. 
American Mercury is supposed to research the check and once found will apply the funds to my account, and send a refund to my attention for overpayment.
This time Chase did not fail in their duties to send payment to the homeowners insurance carrier, but the insurance carrier failed to post the payment.

Thanks,
Kathey


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Kathey wrote:
I have had an escrow account for 7 years with Chase Manhattan aka Chase Home Finance, LLC. On December 14, 2007 I received a copy of an unpaid MUD tax bill.  The bill was successfully faxed to Chase Home Finance. I was told by a Chase supervisor that a single check was mailed via DHL to Chimney Hill MUD on 1-09-08. The Chase website indicates that Harris County taxes were paid 12-21-07, Chimney Hill MUD 1-9-08, and Cy-Fair School taxes paid on 12-28-07. On January 19, 2008, I received notice from Harris County Tax Assessor that as of 1-18-08 no payment has been received.  I was informed that I was responsible for payment of taxes. I checked all taxing authority websites, and to my amazement, the CHIMNEY HILL MUD taxes have yet to be paid along with Harris County and Cy-Fair, ALL REFLECTING NON PAYMENT as of 1-18-08. I cannot fathom why Chase Home Finance, LLC is NOT paying the taxes in a timely manner, when the prior 6 years, the taxes and insurance were paid before penalties and interest were assessed. Now all of a sudden 2007 taxes are NOT PAID from an escrow account holding $5000. The escrow account reflects a decrease as IF the taxes had been paid, but the taxing entities have NOT received monies due. I have written a qualified written request letter to Chase, citing Respa sections, with copies to HUD, Texas AG, FTC, OTS, OCC, BBB, all to NO AVAIL. Is my only choice now to pay the taxes and then file a lawsuit for fiduciary irresponsibility, breach of contract, and deceptive practices? Thanking you in advance for your help and assistance. Sincerely, Kathey
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