MGC Mortgage / not paying property taxes

TX, United States Review updated:

MGC Mortgage did not pay my property taxes that were due on November 15, 2009. I have contacted them 27 times and have been told the same thing every time: 1) Yes we know we are in violation the our contract with you. 2) Yes, we know that we will have to pay the taxes plus the interest. 3) Yes, we see that your account is marked "urgent pay". 4) No, we do not know why it has not been paid.

In January of this year, I received a letter from MGC Mortgage telling me that they have underestimated the property taxes that are due and they are requiring me to pay an additional $160.00 per month. In November the escrow balance on my statements went from over $2000 to a negative ($165.00). So, I assumed they had paid my property taxes. When I called my county tax department the latter part of November 2009 that is when I was told they did not pay my taxes, but they did request a copy of the tax statement in August, 2009.

They have also tried to charge me a monthly "late fee" because they did not process my payment on time. I sent them notification of a their signed receipt of my payment allowing them 7 days processing time, so they reversed the fees. On average it takes them upwards of 21 days to process my payment.

I found out two weeks ago that the Texas State Banking Commission has taken over regulation of this company. So I contacted them. I was told by them that they have "floods" of complaints coming in about MGC not paying taxes or not paying insurance as stated in mortgage contracts. I was then given the web address within the Texas Banking Commission to download paperwork to submit to them for review.

I have noticed that they are aquiring a large amount of mortgages from large banks like Bank of America. Are they using my missing property taxes to assume these loans?

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