Question on Suspense account

[mar639]

Hello,

I have a question and ASC can't see to answer it.

I was approved for a loan modification on March 5th with a contribution amount of $1400 and mortgage payment extended from march to May 1st...ok

Now on May 1st I call Asc and try to make my monthly payment of 4649 through their system which didn't allow me to do so and I was transfered to rep which told me that since I had made a contribution amount of $1400 I needed to pay the difference which was around 3200 and he took my payment over the phone. I did explain to him that this was my first payment and he told me since a modification is in effect I was transferred to the ART Team who was taking care of modification and the very nice lady told me that I needed to make the full payment of 4696 and she was able to take the remaining payment over the phone waiving my fee. I recieved confirmation # 's for both transactions.

Then I looked over the payment amount and since there is a shortage of escrow of about $13.00 I called Asc again and made the payment over the phone ,fee was once again waived, even though it took them a while to go figure out the escrow shortage.
Any how As of Yesterday it is showing my payments but their system show that I still need to make a payment on May 1st.

I immediataley called ASC and spoke with a rep which told me that my case was with loss mitigation and was transferred to them. They told me it shows that I made my payment and it hasn't been applied to the account but in a suspense account and she then told me that I need to speak with collections and was transfered there which told me that my account was current and that I actually didn't need to pay the full mortage amount that the diffeence has been applied to a suspensce account. I asked her why hasn't my payment been applied to my principal etc. and she then transferred me to the art dept. and I asked them why is it still shwoing that I need to make a payment for May? She put me on hold for over 20 minutes to come back and tell me that it will take time for them to apply it and I am current and my next payment is due June 1st. She also tried putting a note in the system for them to apply the payment to my loan but she said since it is a modification she couldn't do it and that I needed to be patient and that it will be applied soon.
Then I asked her if I was going to recieve my statement for June and she couldn't answer me.

I want to know what is going on and why are they keeping my payments in a suspence account?

[Moe Bedard]

Lina,

This is called incompetence. Plain and simple. The left doesn't know what the right is doing. A suspense account is just a fluff name for "we don't know what the hell is going on and we need to figure it out before we break the law".

I wrote about this on my blog Fighting mortgage disservice

Some say one problem is that mortgage servicers make their money from late fees and other penalties charged to borrowers.

“There’s a built-in incentive for the servicing industry to really rip people off,” contends Richard Gaudreau, a Salem attorney who specializes in consumer bankruptcy law. “If they can throw your payment into a suspense account because it’s a dollar short, then they can impose a late fee.”

Maroney said some mortgage servicers should be prosecuted for their actions, which he characterizes as “fee-skimming.”

“If you manufacture a default, and you take somebody’s house, explain to me for a second why that isn’t theft,” he said.

[schwefls]

I have to tell you I just modified my loan with Litton on 4/25 (day they received my funds) they clearly told me during my phone conversation explaining the mod on 4/2 that it could take 30 days to update my account but that I still needed to send the down payment by 4/25. Of course I did that and watched my down payment sit in suspense till just yesterday when they updated my account. So it is possible they are just overwhelmed with down payments and put them in suspense until they can crunch the numbers. Have you tried calling your negotiator personally?

[evel1999]

Marg I had a similar problem with ASC when I did my modification.

They told me I needed to only pay a downpayment of $174 (which was late charges on my accoount). I sent that $174 certified funds as downpayment on loan modification along with my signed papers. They credited the $174 to Suspense Account when they received it. My first payment was to be paid on 1-1-08. In Dec I checked on line and my account had not been updated.
I called my agent who did my modification. I left a message. Finally called the Arm Retention Team and told them I needed to speak with my agent about this problem and she had not returned my call. She said she would email my agent about the problem(money in suspense $174 (my downpayment) and also about the on line payment not being updated to show my new payment on line.

The next day she called me back, and said she had received an email from my agent in response to her email, and that my agent had taken the money out of suspense and applied it to the late payments that I owed (my downpayment). She had also corrected my interest rate and new payment.
This was on Dec 29 and my new payment was due 1-1-08. On 1-1-08 all was fine and I paid my first payment over the phone.

Since Feb I have been able to pay on line and everything has been smooth.

Since you got the modification the only person you need to talk to is your agent who did your modification. If you call and they do not call you back, go thru the ARM Team and have them email your agent who did your modification and request that the agent who did your modification call you back.

I hope you have this correct and when your next payment is due 6-1-08 you will receive a new statment sometime in May showing your new payment and that they have corrected everything in the system.

But it is best to only work with the agent who did your modification because until the system is updated they are the only one that knows about your modification and they are the only one who can correct the system and update and correct any problem that has occured with the modification. If you do call, tell them you need to get in touch with that agent(you should have her name and phone no from when you did the modification) Let them know that they are to send her an email and insist that someone from ASC call you back and let you know what your agent said and what she is doing to correct the problem that is going on. They will call you back. If you do not get any results this way, send a letter to the agent who did the modification using the QWR Section 6 RESPA. They will respond this way also.

It seems they are still swamped and having lots of problems. I wish you luck and sure hope before your June payment that all of this will be corrected and like me, you will have smooth sailing with ASC Also.

[mar639]

I called this morning and they finally applied my payment and now it is showing in the system that my next payment isn't due till June 1st. FINALLY!!!
after calling everyday and getting a hold of my negotiator which probably took care of it.
Hopefully I will recieve my statement this month.

Thank you for the info.
Hey Evelyn its nice to see you posting again.