It’s been over a month since I received a rubber escrow refund check from my former mortgage provider, Taylor, Bean, & Whitaker. For those who didn’t catch the story the first time around, my husband and I refinanced and had a $1200 escrow refund due.
At the end of August I received and deposited the check into my bank. A few days later it was returned NSF, causing us to be charged a bunch of overdraft fees that were eventually reversed.
Here’s the update: there is no update.
The Status of Escrow Accounts at Taylor, Bean, & Whitaker
I have called TBW three times now to find out what is happening with my escrow money. Every time I was on hold for around an hour before being told that the money is there. It’s just frozen by the FDIC. According to Taylor, Bean, & Whitaker, I will receive the money, when the FDIC decides to unfreeze the money.
I’ve talked to the FDIC. The FDIC put is blaming TBW in the matter. And they had someone from TBW call me back, basically telling me the same thing TBW told me when I initiated the call.
So basically, nobody at either the FDIC or TBW is giving anyone a straight answer.
The Status of Former TBW Mortgage Holders
Former TBW mortgage owners are in a world of hurt. Some have had to come up with property tax payments out of their own pockets…after having paid a year of tax payments into their escrow accounts.
Some people can’t afford to pay their property taxes and have been assessed late fees. Some are even in danger of having leins put against their property, because they haven’t paid their property taxes.
Some people were part of an Equity Accelerator program that somehow ran through TBW. And payments they made to TBW didn’t make it to Equity Accelerator, so now they’re behind on their payments. Ironic, since the reason that they signed up with EA was so they could get ahead on paying down their principle.
Others still aren’t sure to whom they should make their mortgage payment. On one day they’re told that their mortgages are with Bank of America, and on another day they’re told their mortgages are with CENLAR. And still others have been told that they are part of TBW’s restructuring, under Chapter 11 bankruptcy, meaning that the need to continue making payments to a company whose funds are frozen. Not very encouraging.
Where are the Answers to the Taylor Bean Whitaker Crisis?
In doing a Google search for the status of Taylor, Bean, & Whitaker and the funds they (or the FDIC, depending on who you talk to) are holding, I haven’t come up with much. Neither has anyone else.
Other than local Ocala, FL papers, there hasn’t been much news on the third largest mortgage provider’s bankruptcy, other than the fact that they have indeed declared bankruptcy.
Basically customers are forced to get information from other customers. My last post on Taylor, Bean, and Whitaker has over 160 comments from mortgage customers sharing what they know and what they’ve been told. One reader mentioned that a ruling had been made in the legal case between the FDIC and Taylor, Bean, & Whitaker, but I’ve had trouble coming up with an online source to confirm that.
You’d think that there would be a better way to keep consumers, some of whom have thousands of dollars at stake, better informed about what is happening and what to expect.
I also think it’s sad that here we have a situation that is affecting hundreds, if not thousands, of people: people, who have done everything right, but are paying a high price for the failure of their mortgage company. Yet in the national news, Jon & Kate’s unraveling marriage is of more concern than what happens to people when Taylor Bean & Whitaker doesn’t pay property taxes and insurance.
Search Results:
- CNN: 0 for Taylor Bean Whitaker, 7 pages for Jon & Kate. A search of CNNMoney.com produced 2 results for Taylor Bean Whitaker.
- MSNBC: 29 for TBW, 1,580,000 for Jon & Kate
- Fox News: Difficult to tell, as there doesn’t seem to be a good way to do an exact search. However a search for “Taylor, Bean, and Whitaker” returned two results for the mortgage company on the first page. Other results included Taylor Swift and Green Bean Casserole. A search for Jon and Kate turned up at least three pages of results that were purely about Jon and Kate Gosselin. I stopped looking after three pages.
Does anyone else see something wrong with this picture?
Photo by lrargerich.
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I want to clarify that: I’ve not been as harmed with the bounced check, my failed refi and not being able to refi any other way will cost me over 100,000,000 dollars over the life of the loan. I’m spitting angry.
Finally someone else who is going through this same thing.
We had a mortgage with TB&W paid every month on time. We just got done paying our Mortgage for Aug (TB&W got it on the 4th cashed it on the 6th of Aug) a week later we get a statement from BOA saying how they are taking over our home mortgage loan. Okay don’t really like BOA but whatever. 1st of next month we are waiting for a statement to pay our mortgage, My husband went into a branch to pay the mortgage on the 2nd. He called the 1800number and asked why we we’re not getting a statement (payment coupon) They said oh it will be there next month “don’t worry”. Next month no statement at all, again we go to the branch to pay our mortgage. Then the fun begins we start getting letters saying how we are behind on our mortgage. Uh no we are not. We get proof by way of our bank statements and canceled checks from Aug to present.
They again say “don’t worry” you all fixed up. Then later that week we get a called from their “foreclose” dept. Oh hell no!! We called and talk until we’re blue in the face and NOTHING get’s done. Finally we decided to refi to get away from BOA and this whole mess. We find out that BOA did not get our payment for Aug from TB&W also our Escrow is still being held hostage. So when we refi we had to pay $3380.00 in interest for our “missing payment” plus $480.00 to cover the “missing” escrow!
Now I tell you why did we get screwed? Why are we all getting screwed?? This is not right. The government is holding our money for no reason. That is MY money that was suppose to go to our mortgage payment. I want to know when I’m getting my money back!!
Yeah, that’s the million dollar question. When… Nobody knows. The bankruptcy proceedings continue, but that could take years & years.. There are documents filed to cover those of us who were shorted funds, etc.. but nobody knows when we’ll get our money, how much of it we’ll get, etc. I’m about to look at refinancing also because of the escrow shortage causing my mortgage pmt to go up over 150 bucks a month!
So, I refied away from TBW on 8/09 and the $4500 escrow check they gave me bounced in September of 2009. I have filed a claim and gotten various court info.
Just today (2/2/10) I go a memo from TBW thanking me for my business and a DISCHRGE OF MORTGAGE letter signed by some notory public in FL.
What’s up with this ???
Are they trying to close the chapter on me without ever paying the Escrow?
Be glad you got that letter. That means that your old mortgage was paid off by TBW and is not sitting in limbo like other borrowers who now have 2 mortgages because TBW did not pay theirs off. Escrow monies will hopefully be returned after the court meets on the 19th, but who knows, they’ve been saying that since september.
Are we going to get a 1098 from TB&W for the 2009 year?? I went on their site and printed the form they had and it was for 2008 ugh! So what are we suppose to do? I know I had over 8,000 in interest and $600 PMI payments that go on my taxes.
This is so messed up!
I got my 1098 on Saturday from TBW. You still with TBW, or was your loan transferred?
It was transferred from TB&W to BOA. I was with TB&W until Aug 09′.
If it was transferred to BofA, then you will only get 1 1098 from BofA – you can actually go to Bank of America’s website, log into your account, go to ‘account details’ and print your 1098 online. TB&W’s interest will be included in the one 1098 at Bank of America. At least they got THAT transferred!
Then you should receive a 1098 from BoA.
I’m one of the few who’s re-fi’d right before this mess. TBW transferred the old loan — which should have been paid off — to Cenlar.
Technically, I have two mortgages, but I pay the new one, which has remained with TBW. Cenlar is working with TBW on getting it paid off, assuring us it’s not our issue. Except, of course, for the headache of knowing we have two mortgages on record!
That was a round-about way of saying this: I got a 1098 from Cenlar — which totals all of my 2009 payments up until the refi. Cenlar inherits all off that since they technically took the loan over.
I also got a 1098 from TBW — only for the payments made on the new loan.
So I’d imagine you should only receive a 1098 from BoA.
But I’m not sure of other tax information that might pertain to you, so don’t take my word. I’m not a expert by any means.
I got a 1098 from both TBW & my new lender, since I refied midway through the year.
I got an interest statement from TBW for the money my escrow account accrued when they werent paying out from it. Argh another thing I know have to pay taxes on!
If you go to http://www.taylorbean.com, log into your account, and click on “Payment History”, you can see how much your mortgage was bought for. Look for “TRF SERV”, I’m assuming it stands for “Transfer Service”.
I called BOA and yep the 1098 from them included the interest from TB&W. Thankfully.
This whole thing is a mess. It’s crazy how much everyone is affected by this. It stinks that they did not give us any warning as to what they we’re going to do.
I was, thankfully, one of the lucky ones that just got their loan through TB&W. I went to make my payment online and it said my account was frozen. I called to find out why, and all I got was a busy signal. I then called my mortgage broker, whom was on the phone with them, and he was aware about the FED raid. He told me that Bank of America was going to be the new owner of my mortgage and to mail my payment to TB&W and send it certified so I have a record of them receiving it, until the transfer is official. I did that and I got a letter from Cenlar claiming they were the owner of my mortgage. I called Bank of America to find out if they had any further information and they told me they are mailing out letters to customers as soon as they have the final OK. I got my letter, logged into my account, and everything transferred OK. The only thing I miss about TB&W is the fee less grace period for making online payments at the last minute.
I am in the same situation as many of you. I refinanced just prior to TBW going bankrupt, but my escrow fund check of $780 bounced.
I already submitted a claim to the bankruptcy court. Can this be claimed as a loss on my taxes?
Anyone know??
I’m not a CPA, but my advice is don’t deduct anything for 2009. Think of it as a loan to a dead-beat friend who hasn’t paid you back. My instincts are telling me we’re going to end up whole, but it may take a little while.
First, I’m thinking it would fall into the same category as theft, & in that category, I believe you have to eat the first 2% of your AGI.
Second, even if you can deduct it this year, that would mean you have to count any future remibursements as income. When/if that happens, I’m thinking that the cost of sorting out the mess would cost more than you’d save in offset taxes.
That said, if this time next year we’re still waiting on a check, talk to a CPA to see what you can do for 2010.
Jonathan, I asked the Turbo Tax “Ask a Tax Professional” that question. He said that the amount can be claimed as a loss the year you decide you’ll never see the money again. Since the hearing to determine what happens to the escrow refunds is on February 19, I’m not going to decide until after that date what to do.
If you do claim the loss, and then you end up getting the money from TBW anyway, you’ll have to claim the money you receive this year as income. I posted the complete, but short answer form Turbo Tax here: http://beingfrugal.net/2010/01.....t-edition/
If what you were told is correct, (Sch D loss now & “income” later), then my advice is still to wait until 2010.
IIRC, Sch D losses cannot be deducted from income, they can only be used to offset capital gains, with a distinction between short (=1 yr). That means unless you happen to have sold something in 2009 that resulted in a gain (of the same short/long type), you can only carry the loss forward to future years until you do have a gain, at which time you’ll net the two together.
Then, if a refund has to be counted as “income” (as opposed to a cap gain), you would have to pay income taxes on the refund, while still holding the Sch D loss as a carry-forward.
If you aren’t already going to have a Sch D for 2009, I don’t recommend adding it, just to get this. It’s probably more complexity than you want to deal with.
If we haven’t gotten reimbursed this time next year, consider capturing this in your 2010 return.
Hmmm, I somehow zapped some text from my 2nd paragraph. Maybe it didn’t like the characters I typed.
short term is less than 1 year
long term is 1 year & longer
Who will let us know what the turn out will be on feburary 19 about our esrow account with TBW
My TBW loan was taken over by Cenlar. I too was missing $800 from my escrow, resulting in my mortgage increasing by $200 a month.. I was advised by TBW to file a claim in bankruptcy court. I decided to first demand my escrow account to be properly credited by Cenlar. I wrote a letter to them detailing all transactions since Aug. 09 that showed what my escrow should be. I included copies of all receipts and statements from both TBW, Cenlar, homeowner’s ins, and tax records. I mailed these documents to both the escrow dept and research department at
Cenlar. On Monday, my account was credited the $800 missing from escrow. Thank God!
Wow! What a mess. I am glad that I refinanced my loan and don’t have to worry about mortgage payments, mortgage payoffs, lost escrow money, etc. I was really mad about the NSF on the $765.15 escrow payment. Luckily my bank removed the $40 fee. I now see that so many people are in the “same boat” or sadly, much worse off.
Hopefully something will be resolved after 2/19/10 hearing (which I gathered from other comments). How do we find out what rulings are made and find out more information about the hearing?
I am really disgusted that we know more about celebrity issues (Jon & Kate) than affecting thousands of homeowners. Freezing our funds is “theft” in my eyes.
This is truly a mess. I opened my mail this week to find my Annual Escrow Account Disclosure report. As I read the statement my eyes just about popped out of my head when I was informed that I had a shortage of $5,658.60 and I had two choices…Pay the 5+grand or add an additional $577.23 to my mortgage each month. I quickly called the 800 number to discover that it was answered by a call center in India. They could not help me only was able to read a script. I went as far as getting my county tax commissioner on a three way with them and they informed them that my taxes should in no way be in shortage. I was informed later that TBW did go into bankruptcy (not by the call center in India, but by a business associate.) Our escrow is being held hostage and I refuse to pay more. When will the working Americans get a bailout…I’m very tired of Corporate Grand Theft. Will this make National Headlines?
I was transferred to AHMSI and whenever I called usually got someone in India who had no clue what I was talking about. They kept getting my home owners insurance and property taxes mixed up. Apparently they didn’t know the difference. Anyway I was able to speak with someone in the United States once. I complained about the service/incompetence of the customer service in India and was told to ask to speak to someone in America and they will transfer me. I haven’t had to do so yet but wanted to pass that on.
jen,
any chance you were transferred to AHMSI? The India call center is a nightmare to deal with
No, I wasn’t transferred to AHMSI…I did ask to speak to someone in America and was told that the office was closed due to the snow storm last week. I will also post on the site Megan shared. I believe this is the second wave of the financial disaster (We are the people who are able to pay our mortgages but have been robbed)
I wanted to post this on all of the being frugal TBW blogs so that everyone sees it. Hopefully it will do some good.
Author: lucy
Comment:hi guys, someone posted this on another site: “I am trying to get us more media attention. Please visit the following I report link. Hopefully if we get enough web hits someone at CNN will take up this story and our cause.” http://www.ireport.com/docs/DOC-408074 maybe if enough people comment this will finally get some media attention?
Gosh, I hope so. I commented there also. This is ridiculous, and I also can’t believe the media hasn’t gotten wind of this and exposed this theft of our funds! The bankruptcy courts have no right to freeze OUR assets along with TBW’s – these monies belong to us!
Does anyone know if their is a class action against TBW that I can get in on. I was one of those who lost our home (foreclosure) unfairly. They were very slick.
to reiterate something i have posted to this website at least three times, in regard to AHMSI:
DO NOT SPEAK TO ANYONE FROM INDIA. DEMAND A STATE-SIDE REPRESENTATIVE!
As strange as it sounds they do not have extension numbers, best you can do is get an employee ID #. Every time you call you are reinventing the wheel and have to start from the beginning with your problem.
WRITE EVERYTHING DOWN:
keep a spiral notebook and pen with you when you cal them, note the name of the person you talk to and the time and make notes on what they are saying. It will make you crazy to repeat yourself over and over, but thati s the only way to get anywhere.
DON’T GIVE UP!!!
As sith every other buklly tyoe company, they will drive you to the point of doubting your sanity, but hang in there. I smoke like a chimney every time i call them, and i call them every Wednesday.
Yes, TB&W slapped lender insurance on the property but AHMSI refuses to credit the policy even thoug my adjuster and i have sent four faxxes apiece verifying the binder. So tomorrow i start again. I have gotten it down to $1300.00 from $1899, so iguess it is worth it. Had the sam eproblem with another piece of property,rather than putting me through all this she asked for the policy number, deductible and date of coverage and that was it. Why cant AHMSI make things that easy? I just don’t know.
PLEASE BE PATIENT:
dealing with these peoplevis deceptive, i have been told it was all ok, at least 5 times, but every time i get a paper statement it is still there.
dott
Do you know if you have to file a claim if TBW sent you a check and it bounced? If so, how/where do you file a claim?
Was anyone else noticed of Freddie Mac’s objections? This came from Lowndes, Drosdick, Doster, Kantor & Reed, whoever they are. Freddie Mac is objecting to stuff. It’s hard for me, I’m not a lawyer, but it’s interesting to me that the objection states that THERE ARE NO PROMISSORY NOTES for over 100 loans for the people who now have 2 mortgages, and they don’t know who owns many other loans. Perhaps we should all just stop paying our mortgages at the same time and let them try to figure it out.
Could some answer me this question. was the pmi insurance paid when the loan defaulted or forclosed on. and if you had a VA loan was the 33% paid for the forclosed loan. I am trying to find out if tbw was paid this money, but transfered the loan to the new holder for the pricinipal amount?
Has anyone heard what the result of today’s hearing was? 2/19/10?
Does anyone know what is going on from the Feb. 19th court date? I am not a lawyer, but it looks like there were thousands of $$’s approved for lawyer fees. What about all of us who payed our mortgages on time and did what is right and entrusted TB&W in good faith to hold OUR escrow money.
Feb. 19 hearing: Motion was granted with objection overruled. That’s all the BMC group Web site says. No further info yet, hopefully soon.
I got the following email from lawyer representing TBW in the bankruptcy case.
On February 19, 2010, a hearing was held on our Motion for Approval of Protocol to Resolve Borrower Issues. The Motion was granted. We expect to submit an order to the Judge for signature by the end of the week or the beginning of next week. In the meantime, you can go to http://www.bmcgroup.com/tbwmortgage – click on Court Docket. This will give you a list of all the documents filed in the bankruptcy proceeding to date. Go to docket no. 927 – this is the motion. The Motion will give you information about the relief that was granted by the Judge with regard to the frozen bank accounts containing the escrow monies.
looks like they loaded the protocol order on the web. The link for docket 1071 doesn’t work yet…
1071 2/23/2010 Proposed Order – Order Establishing Protocol to Resolve Borrower Issues Filed by Jeffrey W Kelley on behalf of Debtor Taylor, Bean & Whitaker Mortgage Corp. (related document(s) 1043 , 1042 , 1039 , 1055 , 927 ). (Kelley, Jeffrey) (Entered: 02/23/2010)
Check docket #1079. It has order.
I’ve been on hold for an hour at TBW… any new news out in the wild?
Talked to them this morning and they are saying as long as the other investors don’t object to the feb 24th ruling the money will be disbursed to them and they (freddie mac, wells fargo etc) are to disburse the money to us. The guy I talked to also mentioned that the TBW call center maybe shutdown as early as friday! I am hoping this is all good news for all of us.
Well, I am not exactly sure what that means to those of us who had escrow funds that were paid by the bounced check. I don’t know where those funds were transferred to, or who will be distributing my money. Is this clear to anyone? Also, will they disburse funds before June 15th, which seems to be the date that was established for people to file a claim. It makes me uncomfortable to see all of the attorneys fees that are being awarded. Will there be anything left for us?
For those of us with the bounced escrow checks, this is what I understand from my conversation with one of the restructuring officers. The monies for our escrow refunds will be transfered to the “investor” at the time all this bankruptcy started. The monies will then be distributed from Freddie Mac to the individual borrowers (i.e. You and I). In my case, TBW will transfer my escrow money to Freddie Mac, and Freddie Mac will cut me a check, since they were the original “investor” for my loan. This is all based on the assumption that Freddie Mac elects to participate in the borrower protocol.
David,
I dont know much about these things. I had refinanced with another company, so my escrow account with them is fully funded. My bounced check was a refund from my TB&W escrow. Am I understanding correctly that my money will go to someone else before I get it?
Thanks for your help!
Jeff
That is my understanding as well. I dont think we have to file for anything as TBW has records of who is owed money.
Nish,
Taylor Bean was investigated for the way they handled people’s money. I wouldn’t trust them or their records. It only takes a few minutes to file a claim with a court, and it can’t hurt anything. Better safe than sorry.
I recieved a packet from TB&W yesterday. It was a claim form and a copy of the court paper signed by the judge. I have already filed a claim. I guess there is a ten day window for someone to object to this protocol?? I sure would like some interest tacked on to my money for having to wait. Especially if I have to wait until June. That will make it almost a year that they have been sitting on my money. If it was the other way around, and we all owed money to them, we would all already be swinging from an oak tree by now!
Jeff,
I received the same packet yesterday. Are we supposed to fill it out and send it in again? Are you going to?
Marni,
I am going to fill it out again. I dont want those clowns coming back and having the excuse that because I didnt send the new one in, I lost my rights to my money. Based on the circus I have seen so far, I would be suprised by anything.
Good luck!
Jeff
Actually I meant to say that I would not be suprised by anything.
Thanks,
Jef
Jeff,
What else was in your packet? Anyone else receive a packet?
I believe those were the only two things besides a return envelope.
Good Luck,
Jeff
I received a packet to. I didn’t have much time to look at it but it did contain a claim form and I have already filled one out. I am going to fill it out again though. Did anyone else have time to read it?
Megan,
There was a signed order (not sure of legal name of the document) from the judge.
If you have already filed a claim with the bankruptcy court, there’s no need to fill it out again. You can look on the bmc groups website under filed claims, mine is there but it was hard to find. You can file an amended claim if you want to add interest. Use the form they sent you and just check amended.
I too rec’d my packet yesterday. It says in the 4th paragraph that you do need to fill out a claim if you are one of the groups described in paragraph 5. Section a of para. 5 says you do not need to fill out a claim if you have already filed a proof of claim against the debtor utilizing Official Form. No. 10 (which is provided on the bmcgroup site).
I have a bounced refund check from TBW. Does anyone know what we are supposed to fill out in part 4 and 5 of the claim form?
Freddie Mac Chose to Opt-In this morning on the Borrower Protocol for Issues 1,2 & 3. This is good news.
David,
Where did you hear that?
I’m an affected borrrower for one of the three issues — and the net-fund situation (issue 4) as well.
One of the restructuring officers at TBW told me. I’ve been in contact with him throughout this process. He did not mention anything about Issue #4, but I’m not affected by it, so I didn’t ask.
Can you send me his contact info, please.
aabrami@saintmikesalum.com. Or post it here if you’d rather.
Freddie Mac has not answered about Issue 4 yet. Other investors has opted in. That was what I heard from TBW.
If I haven’t received the packet, then what should one do??
Can someone email scanned version of the packet? Can’t believe consumers have to go through like this, but hey, if we don’t watch our backs, then who will? Thanks for your help
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