My first mortgage was purchased by Aurora Loan Services in March. I requested an escrow account be established on March 27, and sent property tax and insurance information for this purpose.
In June I was charged a bit over $5000 against my escrow account for "failure to maintain insurance". I called Aurora, provided proof, and was assured a refund would be issued to my escrow account. I mentioned that they had my insurance information, including proof of my 17-year-old policy on my home, as part of establishing my escrow account.
It is now Nov I have called weekly (at least 19 times according to my records), each time they say yes, they have proof, and they will issue a refund within 7 to 10 days, and yet, Aurora still has not issued a credit to my escrow account. This starts a nightmare process of...
... They refuse to make any payments from my escrow, so I've had to pay insurance and property taxes from my own pockets. As a final insult, they refuse to post my monthly payments to my account, claiming I have not submitted sufficient funds (for both the mortgage and escrow), due to a "recalculation" of my escrow account. As such, my mortgage reports to be late to the credit bureaus, despite automatic payments from my bank account to Aurora every month (2 weeks early including the originally requested amount for escrow).
I wrote last month requesting cancellation of my escrow account. They refuse to cancel the account, claiming insufficient Loan-to-value ratio. I noted that I voluntarily established this account, asked them to provide any contractual evidence that said I had to maintain an escrow, and they said its a company policy, etc., etc. I am still working with Aurora to cancel my escrow, its being resolved by a "supervisor" at the moment...
This has been a complete nightmare, Aurora charged me more than $5000 claiming lack of insurance proof and debited this from my escrow. Aurora has had the proof from day 1, which was needed to establish my escrow account (and I've had the same policy for 17 years), then refused to refund this erroneous charge, despite claiming in weekly phone calls to resolve the situation, as well as refusing to post my payments or make escrow payouts claiming insufficient funds!
I would be thrilled to hold them accountable for their actions, which border on criminal liability. If anyone wishes to join me in an action against Aurora, please contact me. Avoid this company at all costs, read what others have said, and whatever you do, don't allow them to touch your escrow or insurance funds in any way what-so-ever.
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