Reference: Loan No. 03501539

Ladies/Gentlemen:

In February 2010 you increased my Mortgage payment $300.00, due to an escrow shortage that started
in 2007. I worked out payment arrangements at that time and agreed to pay more when I could to pay off this deficit. I systematically paid $211 over the minimum for 2 years and $95 +/- since Jnuary 2010., only to find that the excess was, to my shock, being applied to principal reduction.

I have contacted your company many times and asked that these funds be properly applied to the escrow shortage but was told that would be impossible since it would change the disbursement in interest payments. So due to PNC's unacknoledeged accounting error, applying payment funds, I am in default because the rents received on this property is not enough to meet your NEW minimum payment. The original workout agreement was based on a 48 month payback and that has bewen shortened arbitarily by 8 months resulting in a payment I find difficult to meet. Due to unemployment, and recent illness I do not qualify for the federal workout program

I never noted my payments to apply these funds to principal, I did not realize I had to. I have been in the Mortgage Business since 1974, first servicing then mortgage production. It was common procatice to tell clients to purposely mark principal reductions due to usual misapplication of funds. What mortgage company in their right mind applies additional funds to principal when an escrow shortage exists. Unless that mortgage company is intentionally trying to create more foreclosures through increasing payments beyond the borrowers capability to pay. Especially when the home has good equity!!! Thieves! Snidley Whiplash tying Sweet Nell to the railroad tracks! is the vision that comes to mind.

The increased payment information was not received until April 2010, my payment of $1875 was sent in May 2010. I received a letter stating you could not apply the payment because prior arrangements had not been made. I tried to make arrangements and your customer service department has no interestin assisting or acknowledging any error on the distribution of prior payments. The proper application of these funds should have paid this account up in 36 months approximately.

In addition to these problems, your company tried to collect $4000/year for hazard insurance 2 year
worth, even backdating a policy 1 year which is illeagle. My policy had lapsed and I did not receive notification, however when I found out the policy had been lapsed by 2 months you charged 4X the normal rate. I guess that should have been a good indication of how you do business and I should have paid closer attention to the application of my payments. Hopefully the federal trade commission can offer some solution to this problem, at least they are who we refer clients to if there is a problem creating the mortgage.