I financed my home in Jan 08 with Beneficial. I had fair credit but needed sub-prime co. I was pressured to close ASAP before "rates went up." So I ended up closing on a saturday. They told me towards the end of closing after I had signed everything else that they were unable to set up my insurance on escrow so I needed to sign a waiver stating I waived my right to place insurance in escrow. They assured me this was only because it was saturday and they would be able to set it up on Monday. Well Monday ended up being sometime in May. Because of this my payment was then almost $200/ mo higher than origanally quoted because I needed to get my escrow caught up. They assured me that in September once my insurance was paid that my payment would then go down to original quote.
In august the loan was taken over by HSBC (parent co of Beneficial.) Of course in september when I called noone knew what I was talking about and had a reason why it could not happen. I'm still not quite sure why.in september they also paid my flood insurance 5 days late. Just so you know there is no grace period for flood ins. I just had no coverage for 5 days in the peak of hurricane season. I live on the coast in bad flood zone. HSBC had no explanation or apology nor did they offer any fix. I was just SOL if my house flooded.
In Feb 09 I received an escrow analysis from HSBC saying my payment was going to raise again because the account had to go into the negative a few months after they paid my insurance. I was already paying $3400 a year in escrow when my insurance and taxes only added up to $2400. When I started investigating and going through all my back statements I realized that when the account transferred from Beneficial to HSBC $580 seemed to disappear from my escrow balance. When I called HSBC they had no idea said it was Beneficial's issue. Beneficial said sent that payment in June for my taxes (which are due in May and only $206 biannually) and that was where the money went. But HSBC statement showed HSBC making 2 payments in Sept and Oct (late again.) i called the county and they never received $580 from Beneficial. Then Beneficial takes 2 weeks to do research inquiry to tell me the check was never cashed. They would send it to HSBC. Who still has not received the money. Now Beneficial Research dept is doing another inquiry that has lasted over a month. Every one I have talked to agrees I am due the money but cant tell me why I am not getting it. The research dept does not speak to the public so I have to go through a cost service rep who cant do anything except pass messages back and forth.
I have requested that my escrow account be cancelled. I figure if I have to inspect every statement and babysit I might as well do it my. I should be able to pay on time and save myself the $1200 per year they want as cushion on the escrow. Today I was told that my request was denied because the escrow was in the original terms of the loan. Of course as I said at the beginning only the taxes were in the original escrow. So i sent an appeal letter today. I also said that I was not going to make escrow payments untill I received the check from Beneficial and someone from the research department called me. I also mentioned that I was calling a lawyer if it went to my credit because they are refusing to apply the principle and interest payment that I made this month untill the escrow is paid. I have been busting my butt trying to get my credit better over the past year and I finally got my score over 700. I cant even refinance because my property value has dropped so much. They are sending me some info for goverment bailout assistance. Which I don't need. I just need a fair payment.
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