Mortgage Company Problem

[hhhsux]

What is the name of your state? Pennsylvania

When my original mortgage was written and on the paper work I signed, the mortgage company forgot to include insurance costs that need to be in escrow since I have an FHA mortgage. They openly admit to their mistakes but are telling me I have to pay the shortage. Had they had everything in front of me at the time of settlement with these figures it would have been an amount that was unacceptable to me. But now 2 years after their mistake they are making me pay for it. Is there anything I can do about this? Any advice is appreciated. Thanks.

 

[annefan]

What is the name of your state? Pennsylvania

When my original mortgage was written and on the paper work I signed, the mortgage company forgot to include insurance costs that need to be in escrow since I have an FHA mortgage. They openly admit to their mistakes but are telling me I have to pay the shortage. Had they had everything in front of me at the time of settlement with these figures it would have been an amount that was unacceptable to me. But now 2 years after their mistake they are making me pay for it. Is there anything I can do about this? Any advice is appreciated. Thanks.

So what...you would have rescinded on the closing because the higher payment including escrows was unacceptable to you? You had a three day right of recission, in which you were responsible to read and understand everything you signed. It is no one else's responsibility but your own to understand that the FHA mortgage would require principal, interest, tax escrows, insurance escrows and possible flood insurance escrows.

Of course you have the option of not paying the difference now. And the mortgage company has the option to find you in breach of your loan when your property is found to be no longer covered due to non-payment of insurance premiums. Your choice.

 

[hhhsux]

So basically you are saying I can't do anything now? Would a lawyer be able to help me with this problem?

 

[annefan]

So basically you are saying I can't do anything now? ]

Yes.
You can do something now...pay your insurance premiums escrow.

[/QUOTE] Would a lawyer be able to help me with this problem? [/QUOTE]


No.

 

[HomeGuru]

So basically you are saying I can't do anything now? Would a lawyer be able to help me with this problem?

**A: yes, a lawyer can help you with this. My opinion is that here actually is no problem since your loan requires you to have insurance. So even if the cost was not included initially, you as the borrower are still liable for coverage and payment of same.

 

[JETX]

And I agree.

Simply, you are required by your loan agreement to have insurance to protect the property. The only issue you have is whether your mortgage company escrows the insurance payment monthly and pays it on your behalf, or you pay it annually. Either way, you are responsible for the payment.

So, what is the problem??

 

[HomeGuru]

There is no problem.