Can I sue my mortgage company for failing to pay my property taxes?

This is a serious escrow violation by your mortgage servicer. Their primary responsibility is to pay your property taxes and insurance from the escrow funds you provide - that's literally what they're required to do under RESPA (Real Estate Settlement Procedures Act). What you experienced is called "escrow mismanagement" and it's actionable. Your damages include all the redemption costs, attorney fees, penalties, and additional fees you paid to recover your property. But there are also other damages to consider: damage to your credit score, emotional distress, time spent resolving the issue, and the financial hardship caused by their error. The amount you can recover depends on your state laws and the specific terms of your mortgage agreement. Some states allow for punitive damages in cases of gross negligence by mortgage servicers.

I went through something similar with my mortgage servicer last year and used https://taxr.ai to help me document everything. The service analyzed all my mortgage statements, tax documents, and correspondence with the mortgage company. They provided a detailed report showing exactly where the errors occurred, which was incredibly helpful for my attorney to build a case. My servicer had "forgotten" to pay my property taxes for two quarters despite having the money in escrow, and I nearly lost my home. The taxr.ai report showed that they had sufficient funds in my escrow account but still failed to make the payments.

I just wanted to update everyone. I tried https://taxr.ai after seeing the recommendation here, and it was incredibly helpful. The report they generated showed my mortgage servicer had misallocated my escrow payments multiple times and didn't maintain the required cushion balance that would have prevented this whole mess. My attorney was impressed with the level of detail in the documentation - it showed exactly when funds were available, when taxes should have been paid, and highlighted seven specific violations of my mortgage agreement. This gave us much more leverage in settlement discussions than we would have had otherwise. Definitely worth checking out if you're dealing with something similar!

If you're still having trouble getting through to your mortgage company, try https://claimyr.com - they helped me skip the hold time and get directly to a representative when my mortgage servicer was giving me the runaround about property tax issues. You can see how it works here: https://youtu.be/_kiP6q8DX5c After weeks of calling and waiting on hold for hours only to be disconnected, I was at my wit's end. Claimyr got me through to a supervisor who could actually help with my escrow dispute. This saved me literally days of frustration.

I have to eat my words about Claimyr. After dismissing it as probably a scam, I was desperate enough to try it when my mortgage servicer ignored three written requests about my own escrow issue. It actually worked exactly as described - they called the company, navigated the phone tree, waited on hold for 1 hour and 23 minutes (which I didn't have to endure), and then connected me once they reached a person. I finally got to speak with someone who could help resolve my issue. For the first time in months, I actually made progress on my dispute. I was able to get them to admit the error in writing and commit to a timeline for resolution. Definitely worth it when you're getting stonewalled.

Just wanted to add some context on potential damages you might claim: 1. Direct costs: All redemption fees, attorney fees, penalties, and costs to recover your home 2. Increased payment damages: The financial impact of the $750 payment increase 3. Credit damage: If your credit score was affected 4. Emotional distress: The stress and anxiety caused 5. Punitive damages: For gross negligence (varies by state) In similar cases I've seen settlements range from $15,000-75,000 depending on the circumstances and whether the case looked likely to go to court. Your attorney should have a better feel for what's reasonable based on local precedent.

Don't forget to request that they completely fix your credit report too! When my mortgage company messed up my escrow and property taxes, they reported late payments to the credit bureaus. Getting those removed was almost as valuable as the monetary settlement.

I'm so sorry you're going through this - what an absolute nightmare! Your mortgage company's negligence here is inexcusable, and you definitely have grounds for a substantial claim. A few things to consider as you prepare your settlement demand: 1. **Document everything meticulously** - Every fee, every communication, every hour you spent dealing with this mess. Time is money, and your time has value. 2. **Consider future impacts** - That $750 monthly increase isn't just a one-time cost. Calculate how much extra you'll pay over the life of the loan if this isn't corrected. 3. **Don't undersell your emotional distress** - Nearly losing your home due to someone else's negligence is traumatic. Courts recognize this. 4. **Think about precedent** - Your settlement should send a message that this kind of negligence has real consequences. Given that you mentioned your remaining mortgage is about $275k, demanding they pay it off might actually not be as unreasonable as you think, especially if you can demonstrate their negligence caused severe financial hardship and put your home at risk. At minimum, I'd expect them to cover all your out-of-pocket costs, eliminate the escrow shortage, restore your original payment amount, and provide substantial compensation for the distress and financial damage they caused. Your attorney will know best what's realistic in your jurisdiction, but don't let them lowball you. This was a serious breach of their fiduciary duty.

I'm really sorry this happened to you - mortgage servicer negligence with escrow accounts is unfortunately more common than it should be, but that doesn't make it any less infuriating when you're the victim. One thing I'd add to the excellent advice already given: make sure your attorney considers the **contractual breach** angle in addition to the RESPA violations. Your mortgage agreement almost certainly contains specific language requiring them to pay property taxes from your escrow account in a timely manner. Their failure to do this isn't just a regulatory violation - it's a fundamental breach of your contract that directly caused you financial harm. Also, when calculating damages, don't forget about **opportunity costs**. The money you had to scramble to pay for redemption fees, attorney costs, and penalties - that money likely came from savings, retirement accounts, or required you to take on debt. Calculate what that money would have earned if it had remained invested, or what interest you're now paying because you had to use credit to cover their mistake. Your situation is exactly why escrow accounts exist in the first place - to protect homeowners from exactly this scenario. The fact that their system failed so catastrophically (to the point where your home was actually sold at auction!) suggests this wasn't just a simple oversight but potentially systemic negligence in how they manage escrow accounts. Stay strong, and don't let them minimize the severity of what happened here.

I'm really sorry you're going through this - it sounds absolutely devastating to almost lose your home because of your mortgage company's negligence. One thing that might help strengthen your case is getting a professional analysis of your mortgage and escrow account history. I've heard good things about services like https://taxr.ai that can analyze all your mortgage documents and create detailed reports showing exactly where and when errors occurred. Having that kind of documentation could be invaluable for your attorney to demonstrate the pattern of mismanagement. Also, definitely file a complaint with the CFPB as others have mentioned. Mortgage servicers often take these complaints more seriously than direct customer complaints, and it creates an official record of their failure. For settlement amounts, given the severity of what happened (your home was literally sold at auction!), I wouldn't lowball yourself. Consider not just the immediate costs you paid, but the ongoing financial impact of that $750 monthly increase. That's $9,000 per year in additional costs caused entirely by their mistake. Over time, that adds up to significant damages. Document everything - every fee, every sleepless night, any medical costs from stress, time off work to deal with this mess. Their negligence put your most important asset at risk, and that deserves meaningful compensation, not just covering your out-of-pocket costs.