| What amount can mortgage company hold as "cushion" in mortage escrow?
What is the name of your state? IN
I live in IN and our mortgage was recently sold. The new bank has increased our escrow account by $230 a month after their escrow analysis. They said they keep a 2 month cushion. Our monthly escrow payment was $409 and now they have estimated a $2200 shortfall and plan on increasing the monthly escrow withheld to $640 per month.
My question is are they legally allowed to hold this much of a "cushion". (Our previous mortgage company did not have this cushion.) And if so, is this 2 month cushion calculated to be present at the lowest point of the year, ie after real estate taxes are paid? At the end of the year, they will have an excess balance of $1400. What happens to this money?
Other than refinancing this mortgage, is there any way to eliminate the escrow account so that we can pay our homeowners insurance and property taxes directly ourselves? | 
Linear Mode
