A week or so ago I chatted up our mortgage company about the hazard insurance and property taxes they collect each month as part of our payment. PITI. Principal, Interest, Taxes and Insurance. I was just curious, really, why our tax collector had just informed us all of last year's taxes had not been paid.
They didn't get a bill? They didn't notice on their end of year reconciliation statement it had a zero next to taxes paid? They had $3200 extra dollars sitting in impounds with nothing to do?
The mortgage company at first tried their traditional pass the buck stuff, but what turned up is that they utilized the impounds for cleverly double paying for hazard insurance with two different insurance companies (old and new). They also took it upon themselves to pay for FEMA flood insurance which had been prepaid and a copy of the invoice sent to their impound department to verify coverage.
We had a sticky wicket. I was transferred around past two or three people before resting in the tax department with a really young-sounding person who quipped: Oh no biggie! We will just refund you when all this sorts out.
That would be fine except for the small matter about the taxes. Oh I don't know anything about taxes, let me transfer you ...
I was connected with an equally pleasant and useless tax specialist who chatted for a while about the curious situation with the impounds, and that she actually notified me the loan was not collecting for taxes.
We chatted a bit about the T in PITI. I was getting nowhere fast, so finally asked, what do you suggest we do about the $2800 due by June 30th? Well, she smiled through the phone, since we wouldn't be able to pay the taxes anyway through impounds, I suggest you pay it.
Just like that. $2800. Like it's sitting in the side drawer of my dresser.
In the meantime, she continued in her most professional, soothing voice to counteract the boiling blood vibes coming through the phone at her, I will call for an audit on the account to evaluate what happened. That can take up to 30 days to complete. We will be in touch.
In touch, they were. A couple of days ago we received a somber form letter notifying us that our mortgage was going to jump $150.00 a month and did we know we are short on our impounds?
No words.
