Why is my mortgage company not paying my tax bill when I have escrow?

Question

My mortgage company (CITIMORTGAGE) is not paying my tax bill. The money is in escrow, the error has been spotted and documented in a case number by customer service.

I paid the bill myself, because it is over six months late and I risked being put on the TAX SALE foreclosure list.

Should I be worried that they are going out of business? Or is this a computer glitch?

Answer 1

Are you signed up with the tax agency to use the escrow account?  The company has to receive the tax notice to pay the tax.  If you received the bill directly, then the tax agency isn't sending the bill to the right address.

Answer 2

You should be raising h**l with them - in writing.  Chances are that it's administrative error.

Answer 3

If you paid the bill yourself then at the yearly anniversary of your loan they should send you a check because there will be a large overage in your escrow account and there is a limit to how much they can keep in escrow.  If the tax bill was sent to you then you needed to forward it to them.  Otherwise, they wouldn't know how much was due or when it was due.  If the next tax bill is sent to you then call them and ask them where you should send it.  They can't pay a bill that they don't have.