fjpls@mtuxn.UUCP (P.STEVENS) (02/17/86)
----------- Ever since obtaining our mortgage 14 months ago, we have had constant problems with our mortgage company. First, their records showed (and possibly still do) our first mortgage payment due on 1-1-85 instead of 2-1-85. Twice this has caused us to be sent "Late Notices" which were supposedly cleared up after numerous phone calls and letters. Our year-end statement even showed late charges due. But we feel we can deal with these Bozos on these problems. Another problem has come up which really has us mad and poised for action. However, we are told that there isn't really anything we can do. After paying our first two property tax payments, the mortgage company failed to pay the final tax bill due on 11-1-85. When we found out that the taxes were overdue we contacted the company by phone. We were assured that it would be taken care of. A subsequent call yielded the same results - talk but no action. Finally, the taxes (almost $2000.00) were paid on 1-20-86 after we sent them a letter enclosing a notice from the township. This brings us to the heart of the matter. Because the taxes were not actually paid until 1-20-86, we cannot deduct them on our federal income tax return. The mortgage company's negligence has cost us a $2000 deduction and the resulting $600 increase in federal income tax for 1985. Oh sure, we'll get the deduction on our 1986 return (if not done away with by tax reform). But this means we are floating an unnecessary $600 loan to Uncle Sam. Our lawyer told us over the phone (as he hastily packed for his vacation) that we have nothing to gain by filing in small claims court. His reasoning was that since we could deduct the taxes next year that we have suffered no real damages to sue for. We feel bitter about being victims of circumstances in this matter. The only option I can see is to request (or sue for) control over our escrow account based on the company's demonstrated incompetence to manage our escrow account (and mortgage account) in a prudent and responsible manner. The NJ Dept. of Banking person I spoke with said this is not unheard of. Anybody out there in netland have a good suggestion as to how we can obtain justice? We would particually appreciate responses from "Legal Eagles" in NJ. By the way - the IRS is quite clear on not deducting the taxes until the year they are actually paid. Paul Stevens - mtuxn!fjpls 201-577-5341