Gmac sold to Ocwen horror!!

[Sara Cruz]

It gets worse. My Gmac mortgage was sold to Ocwen a few months ago. I just got off the phone with them...and the Indian guy tells me as of January 2014 my mortgage will go up $200 due to my escrow being negative... My property tax went down so my house ins... Every time I called them I can't understand and they can never give me a good reason why I'm paying more in escrow.. Is anybody experiencing this?

[Harry M.]

Hey Sara,

One possibility: check that your insurance or property tax hasn't been overpaid. I'm in the GMAC/Ocwen boat also, and here's what happened for me. We decided to change insurance companies this year due to rates going up. However, by the time we informed Ocwen the bill for the old insurance had already gone out for the year. Ocwen writes to us, and says "sorry we can't pay the new insurance because we've already paid the old insurance". So we contacted the old insurance and got a refund, and paid the new insurance directly. Then a month or two later, we received a refund from the new insurance for the full years premium. This caused some confusion! It turns out that Ocwen went ahead paid the new insurance after all (in addition to the old insurance). No real harm in the end, other than sitting here wondering what the heck they are doing, though obviously our mortgage payment will go up some time soon to get the escrow caught up. Well, I assume it will, but with Ocwen you never know...

-Harry