We had our original mortgage with NationsCredit. I had a few late payments with NationsCredit and they informed me when they sold out to Fairbanks that they were doing so and wanted us to pay the late fees.
We did so and had a clean slate with NationsCredit, but Fairbanks states that these late fees were never paid! We started a automatic pay from our checking account with NationsCredit so no more payments would be late, before they sold out to Fairbanks.
So now Fairbanks takes the funds out automatically each and every month. Well, 3 months ago they increased my monthly payment by over $200 stating that we did not have enough insurance (we do).
Last month I got sick and tired of them taking all this money out and I had no control over it that I called our bank and stopped the automatic withdrawal, I sent in our payment for the correct original amount, not including the "escrow account" amount for the insurance coverage they state we do not have.
They accepted the check and it has cleared our bank. But last week, we received a letter from Fairbanks stating that we have to come up with the remaining $2,600 escrow amount to cover the insurance they placed on our home by January 4th, or they will proceed with foreclosure.
They call 5 to 6 times a day stating that if we don't pay this amount by January 4th, and/or supply them with a phone number and an address for my husbands work where they can contact him, they will foreclose on our home. (They have this in the original documents as transferred from NationsCredit.)
Now I will not answer the phone during the day when the "unavailable" comes up on the caller ID. Since I have been doing this, and they have not been leaving a message on my answer machine, they have begun calling my neighbors (we used them as credit references when we first applied to NationsCredit) to find out if we are home and leaving messages with them to bring over to our house!
This is the ultimate in harassment! We are only going to pay the original monthly payment and are refusing to pay the "escrow" amount.
As long as they receive, cash, and report the payment as received, I do not believe they can do anything and if they take us to court, I have the papers to prove to the judge that within my original documents, NO escrow accounts will be allowed, acknowledged, or opened.
How can Fairbanks refute the original contract and begin an escrow account without my permission? Is this legal?
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