robertplacek
New Member
In June of 2007 my wife and I payed off and closed an escrow account with B of A. We paid our own insurance and taxes in 2007 and 2008 and made regular monthly principal and intrest payments. But in January of 2010 we received a letter form B of A saying our payment would be going up on our mortgage due to an unpaid balance on our escrow.
We contacted B of A and were told that the bank had paid our taxes for 2009 and needed to recoup the difference. They could not explain to us why they had done so without our permission, but after some discussion, we began paying the new payment, using the money set aside for property taxes to pay off credit card debt.
In May of 2010 we received a letter from the taxing authority stating that payment on the 2009 property taxes had not been made. We contacted B of A, and after some initial confusion, they informed us that the escrow balance we were paying on was for the escrow we had terminated in June of 2007.
According to the bank, they had waited 6 weeks to cash the check, at which time they had discovered the account was closed. They reapplied the outstanding balance to the escrow, and despite monthly correspondence between the bank and ourselves, had failed to notify us of the bounced check until we asked them about it 35 months later.
Despite 15 months having passed, they are still unable to explain either the delayed cashing of the check or their inability to recall the debt for almost three years. They are also unable to provide us with information as to what account the check was written on, making locating proof on our end after such an extended period of time very difficult.
Of course they still insist the debt is valid and that we must make payment on it. As of March of 2011, we have paid off the money B of A had to forward to the County of Riverside to cover the taxes they initially said they had paid, but had not. At this time I have written a letter informing B of A that my wife and I do not consider the debt valid and will no longer make any payment on the escrow that remains outstanding. We have informed them of our intent to continue paying pricipal and intrest.
Of course B of A is not unlike Herpes and is not likely to go away. As such, when they continue to call and send letters making payment demands, I need to know how to handle it. Unfortunately this has all the earmarks of a court issue, however at approximately $3000 it is not a large enough issue for most attorneys, but it is large enough to severely hamper the finances of a small, struggling family budget.
How should I follow up on this? What legal rights do I have and how do I go about getting B of A to fully explain how this situation came about?
I appreciate any input anyone might have.
We contacted B of A and were told that the bank had paid our taxes for 2009 and needed to recoup the difference. They could not explain to us why they had done so without our permission, but after some discussion, we began paying the new payment, using the money set aside for property taxes to pay off credit card debt.
In May of 2010 we received a letter from the taxing authority stating that payment on the 2009 property taxes had not been made. We contacted B of A, and after some initial confusion, they informed us that the escrow balance we were paying on was for the escrow we had terminated in June of 2007.
According to the bank, they had waited 6 weeks to cash the check, at which time they had discovered the account was closed. They reapplied the outstanding balance to the escrow, and despite monthly correspondence between the bank and ourselves, had failed to notify us of the bounced check until we asked them about it 35 months later.
Despite 15 months having passed, they are still unable to explain either the delayed cashing of the check or their inability to recall the debt for almost three years. They are also unable to provide us with information as to what account the check was written on, making locating proof on our end after such an extended period of time very difficult.
Of course they still insist the debt is valid and that we must make payment on it. As of March of 2011, we have paid off the money B of A had to forward to the County of Riverside to cover the taxes they initially said they had paid, but had not. At this time I have written a letter informing B of A that my wife and I do not consider the debt valid and will no longer make any payment on the escrow that remains outstanding. We have informed them of our intent to continue paying pricipal and intrest.
Of course B of A is not unlike Herpes and is not likely to go away. As such, when they continue to call and send letters making payment demands, I need to know how to handle it. Unfortunately this has all the earmarks of a court issue, however at approximately $3000 it is not a large enough issue for most attorneys, but it is large enough to severely hamper the finances of a small, struggling family budget.
How should I follow up on this? What legal rights do I have and how do I go about getting B of A to fully explain how this situation came about?
I appreciate any input anyone might have.
