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 ING 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 ING, I couldn’t transfer it right back. We had a little extra in ING 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.
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Below is the response I got from Taylor bean about when will I receive a new escrow refund check for the one that bounced. Sounds like we need to keep calling Judge Funk’s office and not the FDIC
Please be advised that checks will be reissued once the Jacksonville, Florida Bankruptcy court approves the disbursements. Unfortunately, a date for the resolution has not been provided yet. We apologize for the delay and inconvenience.
Please let us know if we can be of further assistance.
Respectfully,
Loan Servicing Department
According to TB & W my loan was transferred to American Home as well on 10/19 and I am to start making my payments to them for the November payment. It is now the 2nd and I have yet to hear anything from anyone on whether this transfer has gone through. Apparently I am going to have to contact someone this week to figure out where I need to make my payment. I thought the escrow payment reimbursement issue was to be resolved by 10/31? Does anyone have any updates?
I can still log into TBW and I see my account was transferred and AHMS was paid but no word yet from the new lender. I did get an email from TBW on my escrow issue and they said “if there is an overage I can request a refund from my new lender” I know for a fact there is an overage since I made my own tax payment in Sept! I am hestitant to call this new lender as I want to see something in black and white from them before I start in on the next headache. If I d o not get anything by Friday I am going to call.
update, AHMS now has our info online I am on hold with their tax department right now
Thanks to whoever set this site up. I too am an escrow account bad check victim. It is nice to follow all of the comments and know that at least something might be going on. Having common friends all trying to get the answers gives me hope that maybe I may get my $1200 back. I am in Utah, and called the Utah Department of Financial Institutions on Sept. 29, 2009. The person I spoke to said she would file a Proof of Claim with the Middle District Court in Florida, Jacksonville Division. I can’t remember where I found the form. It may have been at bmcgroup.com, who is handling the court documents. It is in PDF, so I filled in the blanks, printed it and mailed it with a return stamped self addressed envelope. I don’t know what good has done me. I did recieve the reply back saying it had been filed on Oct. 5th. About the only thing that is now happening, is that I recieve notice of court dates and the court documents in the mail. I don’t know what to do with any of it other than sit and wait for Judge Funk to do his thing. I saw one comment that said that by filing a claim, it just puts me in line with utilities, other employees of TB&W etc. There is probably a lot of truth to that.
Good luck to us all and thanks again for some kind of forum to share and vent!!!!
Duane
Todd and Lucy,
My loan ws transferred to Roundpoint September 8th according to TBW. I just got my first statement on Halloween from Roundpoint showing the escrow moved over and they paid my Homeowners insurance 10/27. Be patient as it took almost 2 months for Roundpoint to get the file. File the Proof of Claim at BMCgroup.com if you are owed a new check
For anyone who has tried to comment on this post in the last day or so, I’m sorry the comments got locked. I have them set to close after so many days, to prevent spam, and that time had elapsed.
Thankfully, a reader alerted me that the comments were closed. I’ve reopened them again, so you can continue to post updates on your TBW status.
Hopefully this will be resolved before the comments close again!
Lynnae,
Thanks so much for having this site, I guess when you set the date for the comments to close you never would have anticpated this debacle would still be going on, just like the rest of us who assumed we would have our money back by now!!! :)
Thanks Lynnae, this page is really helpful to all of us.
called TB&W again today and they said the funds have been released but it’s being done in phases.
They have told me about the phases for weeks now.
Just want my escrow back.
has anyone tried calling Judge Funk’s chambers since it seems he needs to sign the paper in order for people waiting on their money from EA back, I think that would be the place to call. I’m going to look it up and call later maybe. I did call FDIC on Friday and that is what Phil told me, we are waiting on papers to be signed for the funds to be released.
I called EA today. The finally had an update, the first time in weeks. They did say that they recieved notice from the FDIC that the EA accounts were going to be unfrozen in the next few weeks. At that time, as said before, they will send letters to us to let us know that the accounts have been unfrozen and that we need to call to tell them what to do with our money. I thought that this was atleast progress to the “I have no new updates” line.
Hey all,
You can get all the court documents at the BMC Group website. It is bmcgroup.com and click on the bankruptcy tab and go to Taylor Bean list. (Read all about how complex it is. I sent my Proof of claims for my bounced escrow check today.
Judge Funks Courtroom administrators number is 901-301-6566. His name is Ray. Keep calling him daily. Fill up the voicemail
Randy,
Can you elaborate a bit on what you did to file a “proof of claim”.
I’d like to send one too.
I have over 5k of funds from a bounced escrow check.
Serious bummer.
Thanks for all your help!
- Danny
As part of the agreement between the FDIC and TBW, TBW had to file a report with the court by October 31st detailing all the money in their accounts, where the money was supposed to go, etc. TBW filed the report on October 30th. They have not finished that accounting, but the report detailed what they know up to this point. I got a copy of it. I suggest you all call the court and try to get one to. It is too long to post – 35 pages. Tell the court that it is document number 555 on the docket. It does appear that the judge needs to sign off before the money is released – that is why he wants the report. TBW said in the report that they are going to have a meeting with the FDIC in mid-November to finalize the report. The report also breaks down the different issues. For those of you who used EAP, like me, that money is in a Colonial Bank account with a bunch of other payments from other third parties. The report said that TBW is close to straightening that issue out and should be able to have them released soon (assuming the judge allows it). For those of you who got a bounced escrow check, that seems to be the complicated issue that will take some time. There must be thousands of people impacted by TBW’s bankruptcy, because the money in the accounts is in the very high millions.
Thanks to everyone who has added a post and given helpful information. Special thanks to the person who created the site!!! I sold my home with the Taylor Bean loan in July and closed on Aug 4. Yes, one day before they went lights out. I have over $3,000 in escrow that TB owes me. I think I’m lucky they didn’t send me a bounced check. But, now check? Not sure how that will work out. In the search for a new home, the deal, then moving, I’ve put this on the back burner but realize now, I need to move on this.
I will be contacting all the people you suggest. I will post my update as I have them. Please continue to post updates as it is very helpful to get the information … this too shall pass :)
Today, I filed a complaint with the North Carolina Commissioner of Banks. The form was simple and easy to fill out. To do the same, go to http://www.nccob.org/nccob and select Consumer Assistance, then complaint information.
Not sure if this will improve my standing but hopefully pressure from outside groups will move this forward.
I filed a complaint with the central FLA BBB and received a response from Laura Nigels, VP of Loan Servicing, TB&W.
Here is the response:
“We are currently working through the bankruptcy court process to resolve TB&W’s outstanding issues. The outcome fo the Borrower’s specific escrow issue will be subject to resolution obtained from the bankruptcy court. At this time, escrow funds are unable to be disbursed. We apologize for and inconvenience this may cause the borrower.”
oh well… hurry up and wait.
Danny,
Go on BMCgroup.com This is the company that posts all the court documents and filings in the TBW case. They also handles all claims. Click on the Bankruptcy tab and it will allow you to search clients. Clicon the T and it will take you to Taylor Bean. It will then say File a claim. Click the form, print it, fill it out and mail it with all documents you have. In my vase I sent a copy of the bounced escrow check I received back from my bank. Include all fees charges by your bank. Include a self addressed stamped envelope and they will send you a copy of you Proof of filing. You will then be treated as a secured creditor. Hope this helps
Does anyone have any updates lately?
I called today and it was the same… $$$ being released in phases
I’m another victim of the TBW fiasco. I refinanced my mortgage, and they sent me a check for 33-hundred dollars. of course, it bounced. so i, too, am waiting for this money to be released. thank you for setting up this site. it’s been a relief to know that i’m not the only one they screwed. let’s keep fighting for this and maybe one of these days we’ll see our $$!!
I just called EA. I spoke with “Stephen” and I asked him if EA had any bew information on when we will get our money back. He said that EA received a letter last week from the Bankruptcy court stating the accounts in which EA keeps its funds will be unfrozen in a “few weeks.” He also said that we should be receiving letters from EA in the next few weeks informing us that the funds are unfrozen and that they will be sent back to our checling account. He then the funniest thing I heard in a while – the letters will iremind us that we have the option of continuing participating in the EA program. Like that would ever happen.
Thanks for calling D! I feel that we’re making some progress and there may be light at the end of the tunnel…but keep calling EA (as I am going to next week). If they haven’t sent any correspondence thus far, I have this feeling that they might not let us know exactly when the funds are unfrozen. Haha, yeah if anyone continues the EA program after this fiasco, they have to be a complete idiot!
Thank you all for posting your findings. I had been told by TBW representatives that our money was released and sent to the new loan servicers in the form of a check and that the new servicer just had not posted it yet.
After seeing your entry, I called EAP as well and they told me that the money was still frozen and they were waiting for approval form the bankruptcy court to release it, which they expected in the “coming week.” Then they would direct the funds as we request, back into our checking account or on to our new servicer…
It seems like everyone has something different to say about whose money is where and, of course, none of it is confirmable!
I talked to Phil Roth from the FDIC today and he didn’t have a lot of new data. He heard about some of the funds being released but no news on the escrow checks. The FDIC is working with the court and the bank to get the funds to us, but with no timetable.
I wish I had better news. Brad
My kudo’s to this site’s/blog creator. If anyone has eMail addresses and/or telephone numbers for any correspondence to involved Judges, Atty’s, Clerks, TBW personnel, etc. PLEASE POST THEM IN THIS BLOG! We should ALL be sending as MANY eMails as possible to these contacts.
When people say that the squeaky wheel gets the grease, they mean that the person who complains or protests the loudest attracts attention and service
(http://www.usingenglish.com/re.....rease.html)
I received a statement today from AHMSI after the transfer from TBW. This statement lists the escrow balance I had prior to my september and october payments to the defunct TBW. Does anyone know if the escrow funds have indeed been transferred to the new mortgager? And is it possible the unaccounted escrow funds from the past two months is frozen or hasn’t been forwarded to AHMSI? I will call the new loan company, but when I spoke to them last week they were not very helpful.
And I’d like to reiterate that to whomever created this blog – it has been very helpful as there is such a minimal amount of information. Thank you.
kathy,
did they note the payments from sept and oct? If not that may be why the escrow funds are not there? Mine was all accounted for but I never made my Oct payment to TBW. I paid AHMS instead as by time October rolled around I was sick of TBW and was unconvinced they would make my next tax disbursement. If TBW hasnt cashed those check, can you stop payment on them?
Kathy,
I am with Roundpoint now and got my first statement last week. All escrow transferred but I paid August, September and October directly to Roundpoint after I got my new servicer letter
Judge Funks courtroom administrator is Ray Readdick Phone is 904 301-6566 and his Judicial assistant is Edrie Brown 904 301 6560. You can get all info you need at BMCgroup.com All court documents and file a claim if you are outstanding a bounced escrow check
Any idea how we can collect our fees from TBW? We did some contract work for TBW and they never paid us..How can we file a claim? Rex
Looks like there is a hearing this Friday the 20th to approve the Debtor in Possession funding for TBW. Hopefully the judge will sign off. The court docket states that they cannot finish the servicing reconcilation without the financing. Maybe this is all coming to an end Docket # 617 on the BMCgroup.com website under the Taylor Bean case
Randy -
For those of us who do not understand, can you please elaborate what exactly Debtor in Possession funding is and what it means for us?
Hi Tracy,
When a company files for bankruptcy they need to get debtor in possession (DIP) financing. This allows the company to continue operating or liquidate smoothly. Basically a bank gives them a credit line to fund their operations and I assume in TBW’s case, to reprocess the outstanding escrow checks and move escrow to new servicers. The BMC group handles all the claim filing and posting of court documents. If you have not been out there I would sugges it. BMCgroup.com, click on find a bankruptcy case, click florida and scroll done to TBW. Tells you all court filings.
Thank you, I have went to the website and read, but it all sounds like French to me…your explanation makes more sense. Hopefully we’re coming closer to an end.
Thanks for this site. My husband & I are victims of the TBW fiasco. We came back from vacation on 8-10-09, and tried to change HO insurance policies – this is how we found out TBW had been shut down. They wrote our old insurance provider a check for our new policy the day before they were shut down. This $2200 has been my quest to get back since that day. Fortunately, during all of our research we found that we should start paying BAC on 9/1, instead of TBW. I’m really glad we did this or else we’d be even further in the hole. We’ve been trying to work with BAC to get to the bottom of this, but this 5 month process is getting old. Everytime we thingk we give them everything they need, we get another letter daying what we provided isn’t good enough. Like everyone else right now, we feel robbed. I just wish there was a way to file a civil suit against them for providing fraudulent information to the people who took over the loans, hence the reason why we can’t get the money from the agencies that took over the loans.
I’m so glad you posted this blog. Knowing there are others out there going through the same issues you are, makes it a little more tolerable.
If there is anyone out there that used or uses St. Johns for their Homeonwer’s Insurnace provider – I have been speaking to the most helpful person yet. Her name is Annette Capilos. She was able to obtain a copy of the check that TBW sent in for my payment and e-mail it to me so that I have proof that they were not paid. Her e-mail is: annette.capilos@sjicsips.com – her boss is also a big help, her name is Carol Cooper. Her number is 800-748-2030 and e-mail is: carol.cooper@sjicsips.com
Good luck everyone and keep the postings coming.
I’ve been a lerker on this site for a while now. Thanks all for the great information. I’ve got a bounced escrow check from TBW’s Platinum Bank. I was lucky enough to refi before TBW went under and but got caught in the frozen funds fiasco …I am only out the escrow refund ($1K). I did register my claim with BMC…thanks Randy for the clear instructions!
I’m waiting for the day when I see someone post a message here about actually getting a reissued check that doesn’t bounce!
My google alerts have been going off for TBW… Seems that Freddie Mac filed a claim for like $600 Million.
http://washington.bizjournals......ily16.html
Part of that may be our bank where the escrow money is…
I was one of the lucky ones to refinance before all these. I can’t remember when my refinance closed, but it was around the July & Aug months. I got a escrow refund check in the mail a long time afterwards (I remember I was checking the mail everyday for it). I think it came some time in sept, but I forgot about it and didn’t deposit until last week… of course it bounced too….
i started out blaming partly on myself for not depositing right away, but it seems like even if i did, it would have bounced too. what i don’t get is, why did they mail the checks if they didn’t have the funds for it?…
i called Taylor Bean today, and the rep was pretty mean. she said escrow funds still haven’t been released. and when i asked her about the bounced check fee, she was like “huh, you should feel lucky if you ever get your check.” it sounded like i’ll never get it… my check is not much, compare to others here, but still, i work hard for the $$!
oops… forgot to thanks Lynnae for setting up this page! it’s very informative!! thanks so much
Happy Day! I just called EA and told me that my funds were unfrozen and that they are sending them to my mortgage provider this Friday. Since I paid my September payment out of my own pocket after the funds were frozen, my current mortgage provider told me that the funds EA sends this Friday will be for my December payment. EA also said that they will not be withdrawing any more funds. They said they had “good news”. You think? It has only been three months.
After seeing this comment, I called also – even though I had already called them this morning. I got the same response, stating that they would start sending checks to the new mortgage servicer on the 27th!
I wish all the best to those of you with the Escrow issues and hope that you receive a good resolution soon as well!
WOW, I never thought it would happen either. I just called EA and they are sending my balance (equal to one mortgage payment) on to my new loan servicer. They said that if the amount is enough for one mortgage payment that is what they are instructed to do. If it is less they will send a check to you. That is for those of us with EA. I also hope that the money shows up for all of you bounced escrow checks. It’s been great keeping up to date with you all. The guy at EA said that all of this money just became unfrozen within the last hour!!
Just called again, the same woman answered the phone, but she sounded a lot nicer this time.
Anyway, she said the escrow accounts are still frozen, but call back next week. I’ll call again on Monday… I want my money back :(
I just talked to EA and they said some people will get checks, it depends on when you stopped the EA program. She told me anything after September 9th. In my particular case she said the refund would come to me within 5-7 business days of Nov 27th. Check the junk mail good in case you get the check LOL
Guys, has anyone else heard anything regarding escrow check refunds? This is getting ridiculous. I feel royally and doubly screwed. The FDIC seized Colonial, leaving us customers with bounced checks and bills on *FUNDS THAT ARE LEGALLY OURS*. And I’m not even mentioning the heart-ache and stress that naturally comes with misappropriated funds. Not only that, but since we’re all tax-payers, we are also indirectly footing the bill for Colonial’s insolvency (FDIC funded by taxpayer money). I can not stand the injustice on this. Who’s watching out for us little guys?
What I want to know is why hasn’t this gotten any media attention? This is obviously affecting a whole lot of families. Does anyone possibly have any connections? I emailed a couple of my local stations and linked this blog but got no response. Maybe if we can get some attention to it, it will give them a swift kick in the butt!
I called the EA and was told checks had been mailed and I should expect mine in 5-7 days.
I talked with EA yesterday and they said a check was sent by the FDIC on Nov 27th. I will let you know if it doesn’t show up.
I also talked with EA last week and they told me a check would be mailed out on 11/27 and that I would be receiving it in 5-7 business days!
Tracy and Tina,
Did you receive your checks yet? EA told me the same thing – 5-7 days after November 27th, but I haven’t received it as of today.
I received my check Saturday, thank the Lord.
Next Bank account reconciliation is due by TBW to Judge Funk on Dec 15th. First one was delivered October 30th. TBW says no escrow checks will be reissued until the reconcilation is complete. I would not hold your breath for a new check before Christmas. If you have a bounced escrow check like me, you need to make sure you file a secured creditor claim at bmcgroup.com to protect yourself
5-7 business days is what they said so that would be at least Dec 7th
Randy,
7 business days would be Dec. 8th, probably not counting the actual date they say they mailed the check (Nov. 27th).
EA told me the same thing (5-7 business days) so I am suspecting the same thing..around the 7th or 8th.
Got my check from Equity accelerator today! merry Christmas
Randy-
Was it from Equity Accelerator or from the FDIC? Hopefully mine comes today or tomorrow, at least by Monday.
I was wondering if anyone has gotten a escrow check back from Taylor bean and whitaker? or will it be coming from someone else thank you
I called them this week and got the same story… releasing money in phases… blah blah blah.
I asked them about escrow and the bounced insurance check. They said they would send the insurance check back to the company and I would have to get it from them.
I sure wish they would put out a news release or something.
How can I get a check from Equity Accelerator? Is this something that had to have been set up when TBW was in business, or is this something new?
I’m out $ taken from my escrow to pay for my homeowner’s insurance that was never rec’d by the insurance company.
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