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Every State seems to have their own Mortgage / Finance Department. The mortgage in question is with "The Money Source Inc" which as far as I can tell is based in New York State (though their mortgage division is in Connecticut). I live in Oregon State, and this is regarding a second home in Arizona.

My 4 options:

  1. Arizona Department of Financial Institutions
  2. New York State Department of Financial Services
  3. Oregon Division of Financial Regulation
  4. Connecticut Depart of Banking (Consumer Mortgage)

The issue (likely not relevant to my question):

To sum it up, they have cashed a check but refuse to have it reflect on a statement. This occurred due to an increase in property taxes we did not receive notice of (until a mortgage statement with a "suspended") payment and late fees + collection notices. This being the very first notice of any kind.

At this point, negotiation attempts are inconclusive. They are basically asking me to double pay because "they won't accept a payment for a partial amount" even though they did cash that payment and money has left the account (but not applied to the balance).

Edit Thanks for the answers! Fortunately, this was finally figured out. The Money Source was not to blame and I won't be filing a complaint. This was as issue with the original closing (before our current lender even had the loan). Basically, not enough (but more than double our normal payment) was added to escrow at closing. A huge tax shortage existed, in the end The Money Source was awesome and even paid late dues on the Taxes etc. once they figured out the real source of the issue.

  • I would run as fast as I could to an attorney who deals in real estate. They could be in breach of contract - depending on what you signed and the terms you both agreed to. Either way - if they are saying they are just going to take your money, then I fear that a complaint is not enough to get that money back. Just my 2 cents - good luck! – Christopher Jan 30 '18 at 13:42
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You are not in New York and Connecticut, so don't start with regulators there.

They may not be in Oregon, so don't start with regulators there.

The only state where both you and they have a presence is in Arizona. Obviously they are in business there, as a mortgage requires legal paperwork in the state where the house is. And you have a presence there, as you bought the house in Arizona.

I actually had a situation where I called the Attorney General of Florida (where the bill collector was), and they said that I should call my state of residence (Washington at that time). From that example, it is barely possible that you should call Oregon. But my understanding is that Arizona is the proper venue. You and they entered into a contract in Arizona, so it is Arizona law that matters.

Also note that in my example, I called the wrong place initially. That wasn't a big deal. They did not waste a lot of time but simply told me that it was more appropriate to call my state. I would start by calling Arizona and explaining that you are a part-time resident calling about a property in Arizona. If they want to know that you primarily reside in Oregon or the location of the mortgage lender, let them tell you that. The key pieces of information are part-time resident and that the property is located there.

The critical piece here is that to foreclose on the home, they would have to take legal action in Arizona. So you want the Arizona regulators to tell the mortgage lender that this is inappropriate behavior so that Arizona knows to reject collection actions by the lender. Also note that the Arizona process is non-judicial, which suggests that the regulator itself has to approve the foreclosure.

I would suspect that the thing to do is to send them a check for the difference between the normal payment and the new payment with notice that this catches you up current. But the regulator can better indicate to you how to proceed.

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