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Posts: 1
Registered: ‎07-09-2013
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Refinance Mess - Need Advice Please





My mortgage was serviced by Green Tree.  I refinanced through Quicken Loans with no issues under Harp 2.0 in April.  Effective June 1, they transferred the servicing back to Green Tree.




My loan payment was due on 6/1.  I typically pay about a week early.  I mailed my payment, due on 6/1, to Quicken Loans on 5/21.  The next day, I received the letter in the mail saying that my loan had been transferred to Green Tree.


Around 6/20, I started getting collection calls and notices from Green Tree saying that my payment was late.  I have excellent credit and have never missed a single payment for anything in my life.  I explained that my loan was, in fact, paid early to the old servicer.  It turns out that Quicken Loans applied the payment as an extra principal only payment for the month of May and promptly transferred the loan to Green Tree prior to 6/1.


Quicken Loans has been extremely apologetic and spent over 15 hours of phone time between myself and Green Tree trying to sort this out.  Green Tree says that they can't fix the problem and that Quicken Loans must reallocate the payment.  Quicken Loans has been forced to explain, no less than 50 times, that the loan has already been transferred; they can't reallocate anything.  This confuses the reps at Green Tree to no end who continue to insist, like a broken record, that Quicken Loans reallocate the payment.


Finally, after a conference call involving myself and 5 other peole, the issue got "escalated" at Green Tree and they promised they would have the whole thing worked out in 6 days.  6 days later, they told me that it was a very complicated situation and would take another 6 days.  This was 9 days ago.  In short, they simply can't - or won't - fix the problem.


Rather than fix the problem, they spend their time mailing me default paperwork and calling me every day threatening foreclosure if I don't make a payment.  I've actually been holding off on making my July payment until the very last of the grace period (7/16), because they will no doubt apply it to the June "late" payment and this nightmare will never end.  Even my loan rep at Green Tree, who is as frustrated as I am, admits that this will happen.  Her primary goal, however, is to to collect on debts - and she wants more money sent in so that she doesn't get in trouble.


All of the loan info has vanished from their online system.  This is supposedly due to the loan being in default, per a CS rep.  I simply can't afford to make an extra $2k mortgage payment right now (not sure if that would even solve the problem). 


This is an absolute nightmare, and I'm not sure what it's going to do my credit.  Any advice would be greatly appreciated.  I've spent about 30+ hours on the phone over the last 20 days with these folks, and no one can actually get the problem fixed.  Transferring a quarter-million dollar loan takes them 20 minutes.  Reallocating a $2k payment evidently takes a lifetime.  I'm starting to wonder if they are avoiding fixing it on purpose.


I understand that there is a 60 day grace period involving the transfer of servicing for a loan in which no late penalties can be applied.  I am not sure if this applies to credit reporting as well?  Worse case scenerio, if they can't fix it - I can borrow the $2k and make an extra payment at the end of the month.


Any advice would be appreciated.



New Contributor
Posts: 73
Registered: ‎10-25-2013
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Re: Refinance Mess - Need Advice Please



My current mortgage is with Green Tree (transfered in good standing from BofA.) I can't stand Green Tree. I'm looking to refinance in the next 6 months or so, and was considering quicken loans. I'd hate to have them just transfer the new mortgage back to Green Tree!


I hope your payment allocation mess was resolved. That sounds like a nightmare Smiley Sad

JUL 2015 FICO: EX 705 | EQ 694 | TU 692
APR 2014 FICO: EX 651 | EQ 635 | TU 671
DEC 2013 FICO: EX 628 | EQ 559 | TU 655
Super Contributor
Posts: 8,706
Registered: ‎09-28-2007
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Re: Refinance Mess - Need Advice Please

This post is over 6 months old now, so hopefully it got resolved.

However when your loan is transferred there is a 60-day period starting the date of the transfer that mortgage payments cannot be treated late if you accidentally sent them to the old servicer.  See link below.


Treatment of Payments During Transfer Period. During the 60-day period beginning on the effective date of the transfer, the payment may not be treated as late if you mistakenly send it to the old mortgage servicer instead of the new one.


This situation is a little difference since the old servicer didn't apply the payment to the following month's payment, but instead applied it towards principal.  This is an odd situation because normally payments aren't applied towards principal unless it's specified on the payment coupon that accompanied the payment.  Regardless, the previous lender who accepted the payment and applied it towards principal should rectify the situation by reallocating it to the correct month's payment.  The math really isn't that difficult, they received the same amount regardless if what they applied it to, so they just un-apply it (increasing the principal balance to what it was before June's payment) and re-apply it (reducing the principal slightly and satisfying that month's of interest).  Their computer system may not be able to handle that, but someone higher up should be able to make the appropriate corrections.  A piece of advice though, never withhold the following months payment, you should always continue to make your monthly payments on time because what will happen is they will finally fix it but then say you haven't made your July payment and now you are 30+ days late.

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