Why does First Franklin put money in an Un-Applied funds account?

They are doing the same thing to me as well. Are you handling this on your own and how is your progress going

I am going through the same thing. i paid my property taxes and home owners insurance; sent proof and dates of payment to 1st franklin but they are still charging me escrow and are applying portions of my payments to unapplied funds. THen they charged me for an appraisal. When i inquired they said it was done b/c i was delinquent on my taxes, which i never was, i have had a mortgage with them for 3 years and my principal has gone up!! not down!! i have not been late show proof that my payments are cashed by them on time but they are showing me delinquent, charge late fees and are reporting me delinquent on my credit report. I have tried to refinance but cant because they are reporting me late on credit report.

I have had the same problem with First Franklin Loan Services and because I could not get any satisfaction I called the FBI MOrtgage Fraud Division in my state. They told me they are very interested in First Franklin but they need more complaints filed by holder of the mortgages. The unapplied funds is fraud because it is not kept on the books. So, this is what you do...call the FBI Mortgage Fraud Division in you state and file a complaint, be very adamant about it and tell them specifically about the unapplied funds, the reason you know they are kept off the books is that First Franklin cannot give you an accurate statement of who holds the unapplied funds and how much of your money is in there. If we could get thousands of First Franklin MOrtgage holders to complain about this specific issue the FBI Mortgage Fraud Division could move in on First Franklin and then we could all file class action suit against them for fraud.

First Franklin Loan Services is an ficticious named shell company that was formed by the former First Franklin and Nation Point which are bankrupt and out of business. Although they use the name of FFLS they are acutally an unamed shell company that takes you money, does not tell you where it is going, or who it is going to,they have no transparency regarding beneficial ownership. This is a corrupt organization which is being investigated by me. The unapplied funds is supposed to be an overpayment of funds by you to be held until it reaches the amount of one mortgage payment, but;according to fraud schemes if you ask them to show you an accounting of the unapplied funds they cannot because it does not exist this is the way they steal your house. The reason they do not want to assist anyone in saving their home is because they have a mortgage insurance policy on the home for twice what it is worth. If you walk away they get the insurance plus they get the sale of the home after auction. No one knows exactly who is insuring the risk but I will find out and let everyone know as soon as I do. I wish you all the best. For your own peace of mind though, do not make any more calls to them, all communications must be in writing, certified mail and notarized so it can be used as evidence in a fraud case. If you continue to call them they will tack on legal fees to your mortgage. Besides they (First Franklin Loan Services) are not worth speaking with they are dumb as bricks, drones who do as they are told and nothing more. What we need to do is go deep into the trenches to dig up the dirt on this company or should I say ficticious shell, we need to find out who is behind it all and it is not Merryl Lynch, it seems to me like someone in DC is involved because everytime I seem to be getting deeper the brakes are put on and they turn the tables on me, start questioning who I am. Don't worry, I am on your side

I'm having the "unapplied" funds problem too! I send in my payments (actually sent 2 payments a few months ago), and they are not entered as payments, but put into "unapplied funds"! I am a few months behind, but to look at their statements, it appears I am 6 months behind! We've also sent in all the paperwork for a loan remodification (twice) and I get no feedback from First Franklin on approval/denial; nothing! If you call, you get some idiot on the line who has NO idea you've even submitted a loan modification application, let alone being able to talk about it. Who do I report this to? Who can help?? They are threatening foreclosure but still refuse to apply my payments to show that we pay monthly!