mortgage company escrow question

[mau99]

What is the name of your state (only U.S. law)? Maine My mortgage company sent me a letter saying that my escrow account was too low, and I had to pay $794.

When I asked why, they said that my taxes (which are due in March and September) were due early. I said this makes no sense. Does it?

 

[Zigner]

What is the name of your state (only U.S. law)? Maine My mortgage company sent me a letter saying that my escrow account was too low, and I had to pay $794.

When I asked why, they said that my taxes (which are due in March and September) were due early. I said this makes no sense. Does it?

Ask them for further clarification.

 

[mau99]

Ask them for further clarification.

I did.....the manager said she was reading the notes from the escrow dept, and that is all it said. I asked to

speak to someone in the escrow department, and she said that they do not speak to the public.

 

[Zigner]

I did.....the manager said she was reading the notes from the escrow dept, and that is all it said. I asked to

speak to someone in the escrow department, and she said that they do not speak to the public.

Ask for the manager's boss...

Or, you could write an old-fashioned letter...

 

[FlyingRon]

Tell them if they can't make a proper accounting that you'll pay the taxes and insurance yourself. May not work, but it might. When I caught Wells Fargo screwing up not paying my insurance company, I gave them the same line.

 

[mau99]

Tell them if they can't make a proper accounting that you'll pay the taxes and insurance yourself. May not work, but it might. When I caught Wells Fargo screwing up not paying my insurance company, I gave them the same line.

I did say I wanted to pay them myself, and she gave me the email address to request it. I sent a request, but haven't heard back. Today I got a call from Freedom Mortgage, saying Stearns sold my loan to them!

When I refinanced with another company in 2016, I was paying my own taxes and insurance, and borrowed money for escrow and rolled it into the loan. They immediately sold my mortgage to Stearns

and Stearns says that the lowest balance we can have on our escrow account is $1148.52. So in other words $1148.52 just sits there forever. Is this normal?

What happemd with wells fargo? Did they let you pay taxes and insurance yourself?

 

[adjusterjack]

Get a printout of the escrow account for the past couple of years to see when things get paid. Mortgage companies often pay taxes once a year even though you might get to make two payments and it's already March so the taxes might have been paid last month. You could call the tax office (or go online) and confirm that.

 

[MuDoggie1]

What is the name of your state (only U.S. law)? Maine My mortgage company sent me a letter saying that my escrow account was too low, and I had to pay $794.

When I asked why, they said that my taxes (which are due in March and September) were due early. I said this makes no sense. Does it?

Look at the letter again. Is there any other information? It is quite unusual to get a a letter indicating an increase without any supporting calculations or documents. Did your mortgage company pay out more in taxes and insurance than you paid in escrow? Is the letter from your current mortgage holder or the previous one?

There are laws and rules about escrow accounting and reserves. They differ slightly for mortgage types, but it is legal to hold a cushion equal to 1/6 of your combined tax and insurance amounts.

If you cannot communicate by phone, contact your motgage holder by email or US Mail. They don't know why your taxes or insurance amounts increased or why municipalities change the due dates for tax payments. If these items caused your increase, your insurance agent and your tax collector can answer questions about those costs. Most financial institutions have online access for customers. Look and see if there is an escrow analysis for your account.

Getting a letter demanding payment with no explanation sounds like a possible scam. Did you call the number printed on the letter or did you call the bank number listed on your statements?

 

[mau99]

escrow problem

Get a printout of the escrow account for the past couple of years to see when things get paid. Mortgage companies often pay taxes once a year even though you might get to make two payments and it's already March so the taxes might have been paid last month. You could call the tax office (or go online) and confirm that.

thanks, no they pay twice a year

 

[mau99]

Look at the letter again. Is there any other information? It is quite unusual to get a a letter indicating an increase without any supporting calculations or documents. Did your mortgage company pay out more in taxes and insurance than you paid in escrow? Is the letter from your current mortgage holder or the previous one?

There are laws and rules about escrow accounting and reserves. They differ slightly for mortgage types, but it is legal to hold a cushion equal to 1/6 of your combined tax and insurance amounts.

If you cannot communicate by phone, contact your motgage holder by email or US Mail. They don't know why your taxes or insurance amounts increased or why municipalities change the due dates for tax payments. If these items caused your increase, your insurance agent and your tax collector can answer questions about those costs. Most financial institutions have online access for customers. Look and see if there is an escrow analysis for your account.

Getting a letter demanding payment with no explanation sounds like a possible scam. Did you call the number printed on the letter or did you call the bank number listed on your statements?

I received a letter denying my request to pay taxes and insurance myself, saying "Your mortgage loan documents require an escrow account to be maintained on the loan." I am thinking of calling and saying that the mortgage documents also said that I was to pay $1740 a month, not 1818, so they breached the agreement, not me.


"

 

[PayrollHRGuy]

Your mortgage documents also certainly allows for the amount that is paid for Taxes and Insurance to change.

Did they ever provide a proper account for the funds in and out of escrow?

 

[mau99]

Your mortgage documents also certainly allows for the amount that is paid for Taxes and Insurance to change.

Did they ever provide a proper account for the funds in and out of escrow?

No they didn't...... and my taxes and insurance went up less than $100 for the year. They are taking $936. They told me that they don't have to give a detailed reason
"unless it is a large amount" I asked what a large amount is and she said $1500. The reason they gave is because the taxes were paid early. I called the town hall, and
when I said that to the clerk, she just laughed.

 

[MuDoggie1]

I received a letter denying my request to pay taxes and insurance myself, saying "Your mortgage loan documents require an escrow account to be maintained on the loan." I am thinking of calling and saying that the mortgage documents also said that I was to pay $1740 a month, not 1818, so they breached the agreement, not me.


"

If your mortgageholder truly raised your escrow without an analysis or supporting accounting information, promised static escrow amounts and lifetime fixed payments on the closing docs, and pays your taxes earlier than the assessor collects payments, you really should refinance elsewhere. If you are above the LTV threshhold and have good credit / payment history, most banks or credit unions would be happy to have your business.

You should choose a brick & mortar financail institution that is local to you and has a loan rep or mortgage processor in the office. Many even have a basic mortgage 101 webinar or onsite class to cover the basic principles of mortgages and home ownership. Regulations change often, so it is beneficial understand the regulations and stay in compliance.