Taylor Bean & Whitaker Bankruptcy: Who is Representing the People?

When mortgage company Taylor Bean & Whitaker (TBW) filed bankruptcy in August, a lot of everyday people were left in a lurch. Some didn’t know to whom they should send their mortgage payment. Some, like me, received escrow refund checks that bounced. Some found out the hard way that their property taxes hadn’t been paid from their escrow accounts. And some were left with two mortgages on the same property.

As if that weren’t bad enough, a few days ago I received this comment by Lucy on one of one of my older posts:

I got my annual free credit report and TBW reported me late for Sept, even though my payment sat in their facility for weeks without being processed because of their limited staff and besides countless assurances they would not be reporting anyone late. I called and they are correcting it, however just wanted to let everyone know they should check their reports, just in case!

So now, in addition to being out sometimes thousands of dollars, we need to worry about our credit being hurt? Because let’s face it. TBW hasn’t exactly been honest up to this point. They say they will fix the credit report problem, but I’m not going to believe it until I see it.

This whole situation makes me angry, and it’s time someone stood up for the people who have done nothing wrong – people who paid their mortgages on time every month are now being given the runaround everywhere they turn. And nobody seems willing to help.

As of right now there are 325 comments on my post about my bounced escrow refund check in September. In addition, there are 156 comments on my non-update in October. It has been 4 months, and most former TBW clients are just as confused as ever.

What We Know

Currently, the Taylor Bean & Whitaker bankruptcy is being handled by the BMC Group in Florida.

The Honorable Jerry A. Funk is presiding over the case.

Escrow refunds have not been released.

The next hearing is January 22.

What We’ve Heard

From my call to TBW: The escrow money is there, and we will get it back. TBW is just waiting for the judge to release the funds. They’re being released in stages.

From a call by reader Armando to Tiffany at the FDIC: TBW should be finished reconciling their accounts, and should have supplied the information to the bankruptcy court. A ruling will be made this spring as to whether or not they’ll release the money.

Did you notice the discrepancy? TBW says we’re getting our money back. The FDIC says maybe/maybe not.

We’ve also heard from various sources that we need to file a claim with the bankruptcy court to get in line for the money owed us. But we have not been told what to put on the claim form.

The following is a good example of the questions we have, but have no answers to, in this process. Jennifer commented,

I just spoke with Sheila, I think that is her name, in the debtor’s attorney’s office. She told me to file a proof of claim for this money (I am one of those that is owed escrow, but never was issued a check) and that another motion was going in front of the judge on January 22nd. I asked about getting our money back, more looking for a when than an if, and she could not give me a straight answer. So then I asked her if I would get my money back and she still did not give a straight answer. I am beyond nervous at this point…

…When filling it out, I did not know what to put in for the secured credit part. They ask what you are secured by. This is where it gets a little cloudy. This money is ours, it is not owed to us for services; they were holding it in trust, so I do not know what to put down as to what we are secured by.
I am slightly uncomfortable filing a claim as a creditor because I believe we are not creditors. It is our money. We should be given our money before operating costs, before payroll, before everything. They should be sending back the money that is not theirs, but was being held in trust for us.
Is there anybody who is looking out for the consumer in a case like this? You know… a court appointed somebody. I mean, how do we know our case is being represented correctly?I know the other major creditors have attorneys and I just hope someone is looking out for us. Anybody have any ideas on this?

I wish I had the answers. My questions are the same a Jennifer’s. Are we creditors? Or are we under different rules, because escrow monies do not belong to TBW?

What We Don’t Know

The biggest problem here is that we, the innocent people who got caught up in this mess, don’t know where to go for accurate information. The FDIC, TBW, our mortgage brokers, and even the courthouse offices give us conflicting information.

We watch for news reports, but the few reports out there only highlight the problems, which we know all too well. There seem to be no solutions. Quite frankly, that’s not OK with me.

While we spend hours on the phone and on websites, trying to figure out the next steps we need to take, TBW and their creditors no doubt, have expensive lawyers lobbying on their behalf. Does anyone else see the problem here?

My Mission and How You Can Help

I’ve told you already that I’m angry. I’m angry because I’ve been wronged in this situation. I’m angry because I have read every single comment posted on this subject, and it’s heartbreaking that so many people are without their hard earned money and without answers as how to best proceed to get that money back.

For those who are in this mess with me, contact your congressmen. For those who read this site and would like to help, please promote this article. I would love to see this issue get in front of eyes that have the power to do something, whether that be a government official or someone with media clout. Maybe a little coordinated public pressure will get us some answers.

I’ve never been one to go down without a fight. My biggest fear is that when the final court judgment comes in, it is we who have the most to lose that will receive the least.

Photo by walknboston.



Author

By , on Jan 14, 2010
Lynnae McCoy I'm Lynnae, wife of one and stay-at-home mom of two. I'm committed to getting out of debt by being frugal with my choices in life.

Freebies

Popular Articles

{308 Comments}

  1. Adam:

    Does anyone realize that even though BOA took over the loans and are taking payments that None of us have any paperwork with our signatures confirming a business relationship with BOA. I dont. Its even hard to believe that after TBW screwed the pooch that BOA even has the right paperwork or deeds for the properties. I am supposed to have a 16 day grace period for our mortgage and there has always been a day or two delay for the online payments but BOA still called us 3 times a day starting on the due date. Its harassment and BOA is nothing but a debt collector and I dont have a contract with them. Do you?

    • Megan C.:

      You do have a contract with them. Mortgages are bought and sold all the times without the owner having to sign more papers. Mine has been sold twice in 3 years already. I still owe the money for my house, I’m not expecting it for free. But I do hate BOA too, that is why we refinanced.

  2. anna:

    lost home to tbw when husband passed away. tbw would not let me make the payments for the home. home was foreclosed. deed for home was under my name. can I do anything about this???

  3. Carl:

    OK folks here is a new twist. Several months ago Cenlar (bought TB) told us we were late on our Aug. payment which was in TB’s account had canceled check and all other proof. Took several months (till May) to get it straight. Then Cenlar issued us a corrected 1099 for the interest after we had filled our taxes!! Now this October, 10/10/11 statement they are going after us for the same payment they said we made and sent the corrected 1099 for. I am ready for all of us to jump on the CLASS ACTION law suit against all these companys and work to get some satisfation for the home owner.

  4. judy:

    i would like to know what to do also my husband and i were sold to cenlar what a nite mare they want extra 280. a month for escrow thats not there from taylor bean and whitaker is there a class action law suite or any recourse help

    • Alicia:

      Judy, my husband and I are also in a night mare with cenlar and were with TBW before they went down!! They are trying to tell us that we are short two payments for that august and september before the takeover!! We do not know who to talk to and are ready to cry with frustration!! Does anyone know who we can talk to besides a bunch of Idiots from cenlar!! We are about to lose all our hair over this and are faithful mortgage payers!! We have not missed one payment!!! HELP!!!

      • Helen:

        We are also owed escrow $$ from TBW – sent in the W-9 because I was advised it was just for TBW to prove to the IRS who they paid what to and that it would not affect us – not so sure – I’m still afraid of being taxed on $$ we were already taxed on!!! As my husband keeps saying – this is OUR $$ – not theirs and the financial problems it has caused is ongoing. We had re-financed and unbeknown to us – it was right before TBW closed. TBW had sent our County taxes in – but a month or so latrer we rec’d a late notice! After some calls we found out that the check that was sent bounced! Now we had to come up with just about $5,000 that we don’t have to pay the taxes that we had put into escrow – trusiting our mortgage company! I just keep praying that we see the $$ soon – I’m tired of living month to month because of having to come up with an extra $5,000 in 2009!!! Has anyone gotten any kind of payment???

      • Carl:

        Alicia,
        Don’t know if this goes to your e-mail address or not but I have calls into Cenlar and due to high call volume and system failure (wonder why) they had to take my name and will call back. When or if I hear back I better get some satisfaction. I can almost bet no way and if that’s the case I am going to the Attorney General’s consumer protection division to file a complaint. Then the Better Bussiness Bureau. I am Pi_ _ ed now.

  5. Andy:

    After much hand wringing, just sort of discovered that we have been are paying DOUBLE the escrow we should. Still no escrow refund for TB&W.

    Going to take BoA to task. Crooks

    Anyone know of an Oregon class Action suit?

Comments on this entry are closed.

Disclaimer and Legal Mumbo Jumbo

I'm just an average mom, trying to live a frugal life and get out of debt. I write about things that have (and haven't) worked to improve my family's financial situation. What works for me may or may not work for you, and you should always consult a financial advisor before making important financial decisions.

In accordance with FTC guidelines, I state that I have a financial relationship with companies mentioned in this website. This may include receiving access to free products and services for product and service reviews and giveaways.

Any references to third party products, rates, or websites are subject to change without notice. I do my best to maintain current information, but due to the rapidly changing environment, some information may have changed since it was published. Please do the appropriate research before participating in any third party offers.

For additional information, please review our legal disclaimers and privacy policy.