Due to my own lack of attention to my escrow shortages and how Green Tree/DiTech has been managing them, after a few years it is now out of control and will take a forensic accountant to figure it out!!! What I do know is that they collect a "cushion" ever year that is equal to two months' escrow, however, every year, regardless of how little my insurance or taxes may increase, that cushion is gone and I STILL have a shortage.
and regardless of the fact that they do an "escrow analysis" to help me get a handle on any shortages...their escrow accounting (as you have said) is done to their OWN benefit and always early in the year before you have even had an opportunity to accumulate the needed balances!!! They sent me a letter stating my shortage and that I could either pay it in full OR my payments will increase by $80! I was told by the last of several representatives I have attempted to speak to about this....that they are not collecting a cushion AND a shortage. But they went into my escrow, applied the amount of "cushion" as a "deduction" which put me in the negative, THEN they repaid the "advance" by taking it from my next two escrow payments!!!!!!!!!
I am STILL being charged the $80 extra in my payment for the "shortage" , so if my shortage already includes my cushion, then why did they pay themselves and still increase my payment????? Also, if there is a cushion every single year and they are not using it for my "shortage"...why is it not still in my escrow account?? They also calculate the repayment of the shortage over a period of 27 months (if you will read the fine print)..however, every twelve months (or more) they do an analysis...so I have no idea...how the 27 month repayment plan works and where the money I did pay was applied ???????? That 27 month repayment plan is NOT doing you a favor!!!
I am going to write ONE LETTER TO THESE PEOPLE and if this is not resolved I am reporting them to the SEC!! They referred me to RESPA guidelines as to their right to collect their "cushion", but while I know this is done when you get a new loan, I could find nothing in RESPA about this....and it was not done with GreenTree...only DiTech.....If I could refi to another company I would in a minute! but I can't so I have decided to sell my home...the payments will be to high for me to keep it and I can't manage the stress this is causing me.
I have never missed a mortgage payment in my life and I won't allow this company to ruin my credit. If enough people complain IN WRITING maybe it will prompt an investigation!!!
Product or Service Mentioned: Ditech Home Loan.
Reason of review: Problems with payment.