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shemeka30

Junior Member
What is the name of your state?What is the name of your state? Texas

My mortgage company increased my monthly payment by almost $850, for an escrow account shortage, there were some back taxes and they also purchased homeowners insurance since it had expired. They sent me a letter saying that I could pay it off in 24 months, but what I didn't realize, was that they would calculate in the back taxes and insurance, plus this years taxes, and the insurance and taxes for 2006. My mortgage payment was $630, now it's over $1400. I have not made this month's payment, because I do not have an additional $850. My payment will be late after Sept. 15. Is there anything I can do about this?
 


I AM ALWAYS LIABLE

Senior Member
shemeka30 said:
What is the name of your state?What is the name of your state? Texas

My mortgage company increased my monthly payment by almost $850, for an escrow account shortage, there were some back taxes and they also purchased homeowners insurance since it had expired. They sent me a letter saying that I could pay it off in 24 months, but what I didn't realize, was that they would calculate in the back taxes and insurance, plus this years taxes, and the insurance and taxes for 2006. My mortgage payment was $630, now it's over $1400. I have not made this month's payment, because I do not have an additional $850. My payment will be late after Sept. 15. Is there anything I can do about this?

My response:

No.

IAAL
 

HomeGuru

Senior Member
shemeka30 said:
What is the name of your state?What is the name of your state? Texas

My mortgage company increased my monthly payment by almost $850, for an escrow account shortage, there were some back taxes and they also purchased homeowners insurance since it had expired. They sent me a letter saying that I could pay it off in 24 months, but what I didn't realize, was that they would calculate in the back taxes and insurance, plus this years taxes, and the insurance and taxes for 2006. My mortgage payment was $630, now it's over $1400. I have not made this month's payment, because I do not have an additional $850. My payment will be late after Sept. 15. Is there anything I can do about this?

**A: borrow from friends and family and PAY IT.
 
escrow should have been set at closing

How long have you had your mortgage? It seems to me that escrow should have been set up when you closed.
 

efflandt

Senior Member
What tax year were the back taxes from and what year were they due? In some states, taxes are due at the end of the year, but in many states they are collected the following year. So previous owner should have paid all 2002 property taxes, and should have paid any 2003 tax until closing date, or credited your escrow if due in 2004. Unless your mortgage company failed to pay taxes in 2004, they should have been fully aware of amount of property taxes long before now.

However, if it was new construction, 2003 taxes (possibly due 2004) may have been mostly for an empty lot. So the mortgage company might not have been aware of the full tax hit until they got 2004 bill in 2005. But if they had properly done their homework, it should NOT have been a surprise. For example my county (in IL) has estimated tax based on home value for each township on their website.

Why did you let your homeowner's insurance lapse? If you do not provide proof of insurance, the mortgage company will undoubtedly provide less coverage for a much higher fee than if you had gotten it yourself.

PS: I became fully aware that mistakes can be made in taxes and escrow when I received a notice of tax sale when both the title company and my mortgage company neglected to pay a portion of the taxes on my double lot.
 

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