You buy a home with an FHA loan. Every month, you pay not only your principle, but PMI (Private Mortgage Insurance), and property taxes. When property tax time comes around, the mortgage company takes the money you’ve been paying every month out of the escrow account and pays your taxes.
When you refinance a home, you still have to pay the taxes with your new mortgage company. We did this recently (more about my refinance next week). We paid almost a full year of property taxes with our new mortgage company, Bank of America. And we had a refund of almost the same amount due us from our old mortgage company, Taylor, Bean, and Whitaker.
Last week we received our refund. I deposited it into the bank. The bank held it for a few days and then made the funds available, so I transferred money to our Capital One 360 Savings account. This morning I woke up to an overdrafted checking account to the tune of $880.00. What happened?
The Taylor, Bean, & Whitaker Check Bounced
Apparently, the feds raided Taylor, Bean, & Whitaker on August 5th, a couple of weeks after our refinance closed. They filed bankruptcy on August 24th. Which leads to the question…what happens to the escrow money?
The very purpose of escrow is to keep funds safe, so they can be used for a specific purpose. In this case, the funds were to be used to pay property taxes. But since we refinanced with a different bank, and we paid property taxes into a new escrow account, the money should have been returned to us. And it should have been no problem, because the point of escrow is to hold money. The money should have been there.
So what happened to the money?
Colonial Bank is Shut Down by the Feds
Apparently Taylor, Bean, & Whitaker used Colonial Bank frequently. Mortgage payments were deposited there. Employees were paid from Colonial Bank. Sometimes from the same account as the mortgages were deposited into, according to NBC 11.
That doesn’t reassure me that my money and that of many other Taylor, Bean, & Whitaker customers was kept safe.
So the question remains: What happened to the money?
Taylor, Bean, & Whitaker’s Answer
I called Taylor, Bean, & Whitaker to find out what was going on. After being on hold for an hour, I finally got through to Ramona. Yes, she assured me, they were aware that checks were bouncing. The reason was that the bank they used had ceased and desisted. (Colonial Bank, perhaps?) But they are going to reissue checks from a new bank, I was assured. My new check should arrive in “a few weeks.”
So I asked the obvious question. “How long is a few weeks? Three? Six?” She told me two. I’m not holding my breath, but I’ll let you know if the check gets here…and doesn’t bounce.
So what is the fallout? And what happens to the consumers in the meanwhile?
The Consumers are Left Holding the Bag
I can’t speak for everyone, but I can tell you what life is like for us. First of all, we had 8 transactions bounce in our checking account with Chase this morning. Chase charges $25 for each failed transaction, for a total of $200. But they only charge for the first 6 transactions, I’m told, so the total is $150.
Chase told me they’d give me a one time courtesy credit of $70, which is the maximum they could give me. So I’m out $80. Fortunately payday is tomorrow, so we’ll be in the black again. Barely. My husband’s paycheck will be about enough to cover what we owe at this point, so we won’t be spending any money for the next few days at least. Fortunately we don’t have any bills due, and our pantry and freezer are stocked, so we’re fine. I think we have enough gas in our cars, too.
Since I had just moved the money over to 360 Checking, I couldn’t transfer it right back. We had a little extra in 360 Checking that should hit our bank account on Tuesday, so by then we should be OK.
I truly feel for those who don’t have an emergency fund at all and for those whose paydays are not tomorrow. As I was researching this morning, it seems that consumers with their taxes still held at Taylor, Bean, & Whitaker are unsure their property taxes will be paid at all.
It Makes Me Angry
Thousands of families in the United States work hard. We do the best we can to manage our money. We don’t bounce checks, even when money is tight. And when our money is put into an escrow account, we trust that it will be kept safe. And when a financial institution issues a check, we expect that it is good.
And in one moment, when a financial institution hasn’t performed ethically, and a bank is shut down, and a lender declares bankruptcy, the lives of hundreds of consumers are turned upside down. We’re left without our money, that we worked hard to earn. We’re left with overdraft fees to pay. Fees that are not our fault. We’re left wondering whether we’ll need to come up with another $1500 by November, so our property taxes will be paid.
We have to cut through the red tape. We waste an hour of our morning on the phone, just to find out where the money went. We wonder whether this is in any way covered by the FDIC. We wonder if the check we’ve been promised will indeed show up in the mail. And if it does, we wonder if it will bounce again.
I’m glad we’re going to be OK. We’re tight, and the next couple of months will probably be rough, but I know we’ll survive this. But I also know there are families out there devastated by this. Families who will be reeling from this bank failure for months to come. And my heart goes out to them.
Photo by Mike Licht, NotionsCapital.com.
everything is cool here in arizona sorry again
No worries. Let us know what your situation is with your past loan with as many details as possible and we’ll start working on it.
sorry for the comment just this stuff gets old. Phone call and endless phone call.
No Im cool TBandW just sucks!
Matt,
No amount of money is worth your life. Most of us are in the same situation. People who don’t know you care about your well being, otherwise we wouldn’t be replying to your message. please let us know your ok!
Matt,
I can help you find out the status of your check. Please email me at jmfroyd@hotmail.com.
Matt, I have lost everything twice so I can truly say it’s just stuff. You can get more. Everything in life is replaceable except you. If you would like to talk to someone who’s been through the wringer and come out of the other side just shoot me an email. russrex@hotmail.com There is always hope. Things can get better.
I just tried to send a message to the contact info at the top but got a message back it was undeliverable. Matt, if you are reading all this, we care. I will personally call everyone I can to get some answers for you if you will just reply to us.
Sorry the email came back. I’m not sure why that’s happening, but I’ll look into it, so it doesn’t happen again. A couple of commentators did successfully email me, and it looks like Matt is back and OK. Thanks everyone for being so on top of things!
I hope the blog owner.. lynnae can pull that info if she is watching this blog. We have to type the email address in everytime we blog.
lynnae… can you contact matt?
Matt… Please tell me it’s a joke due to frustration…
TBW can do what they want with all the money… don’t let it get you down. There are more things in life that TBW…
Please email back
Brad
Brad, do you know how we can get an email address for Matt so we can help him get some answers???
No check, No will anymore, Going to end it all today!
Matt, surely you are not serious and if that was a joke, it is not funny. If you are serious, let’s talk about this. I have not got my check either but I sure am not going to let TBW ruin my life. You are not alone in this. Please reply.
Matt, we are worried about you!!! Please reply!
Okay, Matt. Give me your info and I will see if I can get an answer on your money. Mine is supposed to be released the end of the month so I am still hopeful. Who was your lendor??? My email address is karr1971@gmail.com and I am in Oklahoma. Let us help you get some answers.
Matt, we are not giving up on you. Please respond so we can help you! With all of our resources, one of us will have a contact number for your situation but I need to know your exact loan/lendor info so we can get to work on it. I know you are frustrated and tired of the run around (and I am too) but we can figure this out. Just PLEASE let us know you are okay. Kristi from Oklahoma
Update: I GOT MY CHECK!!!!!!!! I can’t believe it. I hope all of you guys get yours soon with no problems. Now the drinks are on me!!LOL. Good Luck, Dixie
Hello all from Maryland, just a update “NO CHECK” . I also talked to Jennifer at BOA and she told me that my check was processed on June 7th. I’ll keep everyone updated hopefully with some fantastic news. Until then, Have a nice day!
Just talked to BOA. They said my check was sent on June 7th. I live in NC and Ginnie Mae was my investor. Hope it holds up. If so, thanks for all the help and work of the posters on this site.
Got my check today. Seems Mary from BOA was telling the truth. This piece of mail I hold in my hand just made my year. Good Luck everyone. I hope you all see you money soon. Take care, David
Recieved my check today the new escrow check after mine from platnium bounced in august of last year recieved it from boa and only took 3 days toget here missouri.. thanks to all on this site wish you all luck on getting yours soon
Congrats! I talked to John today at Freddie Mac today and he is in charge of the funds going to Cenlar. They are hoping to have the funds released/transferred in time to have Cenlar issue our check by the end of June. Patience is just not my thing!
Does anyone have a number i can call to talk to somebody about my escrow issues or is it just everyone is getting a reissue check? need help in AZ
No check today. I did not file a claim with the court or BOA. I refinanced with Suntrust right before TBW went south. I received my escrow check weeks later from Platinum and it bounced a week later. When I called BOA they already had my info and told me my mortgage was closed and I was refunded a overage check on June 4th. They even told me the exact amount. I find it hard to believe they would have this info and it not be true so I should have a check in the mail. But I have been told so many things I don’t know what to believe anymore. I’m hoping to see my funds any day. I will keep you all informed with what happens.
David,
Did you need to file a claim with the bankruptcy court or did BOA do that on your behalf?
David,
I talked to someone at BOA yesterday and I was given the same info. The BOA system had two loans in my name, as my refi is also BOA. The lady I spoke to, even had the correct monetary amount of my bounced check.
Well, I just talked to Mary at BOA and she said my check was mailed on June 4th. If this info is accurate Mary just made my freaking day. I will let you all know in a few hours if I received it.
TBW bounced a property tax payment payment from my escrow account. My Loan is now with BOA. Can someone give me contact information for someone at BOA that can help with this. Everytime I call BOA I spend and hour on the phone and get no answers. Im worried about missing the dead line to file a claim. Has BOA already done so for the group of people I fall in? Anyone have the contact information of a lawyer that is helping with this?
Still didn’t receive a check.
I left 2 voice messages for Mr. St Laurent (Ginnie Mae) and then ended up sending an email to the abyss called a help desk because he’s not returning my calls. Then, I called Jennifer Dietrich (BoA) who did return my call only to say that while she can see the money I’m due, they don’t have the funds yet. WHAT?!
I’m calling again tomorrow to find out who they are waiting on. This is absolutely ridiculous.
I just learned that Cenlar will be issuing our check, not Freddie Mac. Cenlar says they have no idea, Freddie Mac says the checks will be issued within 2 weeks. BUT since we have paid our house off and we do not have a balance, who knows!
Kristi,
What’s your situation again? I’m in the net-funded category with Freddie Mac. New loan that was established is still with TBW, but is in the process of being fully transferred to Freddie Mac (per the protocol).
We had a conventional loan with TBW and never knew Freddie Mac had our loan. They overestimated our escrow because the house was new construction. They refunded the escrow, the check bounced, our loan was transferred to Cenlar. We then paid our house off 28 and a half years early, and now since we don’t “owe” Cenlar or whoever they are processing our loan for, they are not sure if we are entitled to a refund or not. Oklahoma is MAD!
Get this…I just called Cenlar again and she (Ashley from India employer ID #LMZEA) said we already got our refund of $160+ (our bounced check was for almost $3000). The $160 was an overpayment when we paid our house off. Then she said we would have our check within 7-10 days when I demanded to speak with her superior. She has no idea what I am talking about and I feel this is never going to end.
I called Cenlar again last night, not liking the response I got from the first lady, and got an English speaking man. He said that Cenlar has not been notified that any funds have been released and once they are, we should have a check within a couple of weeks. So basically, if you are waiting for a check from Cenlar, it could take awhile.
ok i never recieved my check yet!!! so i checked it all out again!!! If you recieved a check from platinium community bank and it bounced and your with boa now or refinanced and boa picked up the loan or escrow you need to call 18006696607 which is boa.. i called and they found my stuff by my social security number and thought i was refunded the escrow by my current mortage company but wasnt so she put in a request to refund my bounced check from platinium and said it will take up to 3 days for the request then 10 days after that i should recieved the new escrow check… and the lady i talked to urge people to call cause in some cases they thought that people were already taken care of…
Description Investor Subsequent Servicer Servicer Contact
Bounced Platinum EDCA Borrower Checks
Ginnie Mae
Bank of America 800-669-6607 call that number for help
and hopefully they get the check out quicker for you all that are in the same situation as me..
What if my check was on Platinum Bank but my loan was via Freddie Mac? I have been corresponding with them but not getting much info. Ours was a conventional loan and not sure why it went Freddie Mac but that is what I was told my Cenlar.
If you goto the taylor bean website and at the bottom it will say put in your loan number and if it pops up with BOA then call them thats what i did….. but if you put in your loan number and it gives you different then boa i will call them and make sure they have your info and are working on getting you a new check out… im not really to sure about freddie mac and the difference there but id definately enter your loan number on taylor bean and whitaker and call the number it gives you hope this helps let me know if it gets you anywhere
Thank you! I guess I am calling/emailing the correct people but it sure is hard to be patient. In the meantime, we have paid our mortgage off and I just have this terrible feeling that will hurt us when it comes to getting our $2800 back! This website has been a great source of info…
Yvonne,
I honestly have no idea what will hapeen with the money you paid. I made similar calls to OFR , Judge Funk’s office and TBW’s attorney’s , and they all said to pay TBW . I asked if they would guarantee me if I need to get the money back from TBW , would they be willing to put it in writing and all said no. I had a bad experience with a previous bankrupt company ( MCI Worlcom ) and I know if you ever need to get money back from a bankrupt company you are basicaly out of luck. So I decided not to pay. Hope it works out for the both of us, as I have the same ordeal as you except I have not paid anyone since my loan was re-fi’d in July 2009.
Phil, Thanks for your response. In July of 09 I refinanced TBW to TBW. I ended up with 2 mortgages–the old one with Cenlar and the new one with TBW. I was afraid not to pay someone in case my house went into foreclosure. In January I contacted the Office of Financial Regulation and was told it was OK to keep paying TBW. I was told they couldn’t write new mortgages but were continuing to service some of their old mortgages. Now I’m hearing that Freddie Mac is considering the old mortgage as the valid one, which probably means I should have been paying Cenlar. Just hope I’m not out all those payments…..
Yvonne,
I talked to a Freddie Mac lawyer a number of times the last month or so.
Those involved with Issue 4 (net-funded) will get the terms of the refi’d loan – whether the old loan is changed to meet the new terms, or Freddie takes on the refi’d loan. Certain details need to be worked out, but we should not be stuck with the old loan.
I’m in the same situation. I kept paying TBW, as instructed by various state regulators/lawyers. TBW’s accounts are monitored/controlled by something/someone to make sure things stay in order. I was told this by a lawyer for the unsecured creditors’ committee.
Is anyone else still paying Taylor Bean & Whitaker? On June 1st I received my normal email from them telling me my e-statement was ready. Today I received an unprofessional looking email advising me that all monthly billing statements will now be sent via regular mail. When I tried to log on to their site to see my monthly statement, I found the site’s security certificate has expired. It’s getting scarier by the day. I’m so afraid I’m going to lose all the payments I’ve sent them over the last 9 months. Any news on Protocol 4??
Yvonne,
Freddie Mac opt’d in to protocol #4 , not sure how that will impact us .Is your loan with Freddie? I have refused to pay anyone since Aug. 2009 since I did not want to be in your position.
Regards,
Phil