mortgage payments/escrow won't be adjusted...is this legal?

[xsarana]

What is the name of your state? Minnesota

Hello,

Our homeowners' insurance premimums went up due to inaccurate information and that affected the mortgage escrow/home payments. Since we were in a shortage, the mortgage company spread out the payments over the "24 months plan"...amd we then found out the homeowners' premimums were incorrect and had it fixed! The premiums were decreased signifinacally (by $700!) and we had sent in the documents to the escrow department reflecting the new premimums. They refused to adjust the escrow/home payments accordingly. I've been on the phone back and forth with both companies. They keep giving me the run-around and is this legal? I don't understand why they won't adjust these new payments/escrow!

Thank you so much!

[FlyingRon]

You can stop harassing the insurance company. They are not responsible for your mortgage escrow.

Is this a VA or FHA mortgage?
What's your LTV?

Answer the above you correctly and you can get rid of the escrow impound entirely.

But yes, federally, there is a law referred to as RESPA.
I'd write them a letter demanding the impound be corrected and if that doesn't work, follow up with a complaint to HUD copied to them.

http://www.hud.gov/offices/hsg/sfh/res/respamor.cfm

[xsarana]

Thank you for your comments!

It's a FHA mortgage.

LTV--I'm not sure what you are looking for, but I know it stands for loan to value. My mortgage balance is at 212K and my home was appraised at 300K. Second mortgage is HELOC of 58K. No other debts besides these mortgages.

[seniorjudge]

Originally Posted by xsarana

Thank you for your comments!

It's a FHA mortgage.

LTV--I'm not sure what you are looking for, but I know it stands for loan to value. My mortgage balance is at 212K and my home was appraised at 300K. Second mortgage is HELOC of 58K. No other debts besides these mortgages.

Then your lender should work with you.

Remember that the person you get on the phone is an underling who has no authority.

Ask to speak to the underlings supervisor.

Keep going up till you get someone who knows something.

Then verify everything in writing; get the first and last names of everyone you talk to and make a note of your conversation.

[FlyingRon]

Minnesota requires the to let you out of the escrow impound entirely at 80%, but I think the FHA mortgage may force the issue back the other way. You can always make the demand anyhow. I'm not fond of escrow impounds. Too much incompetence or outright dishonesty in their administration as you have realized.