Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I just closed on my home less than 5 months ago. The mortgage was sold about 3 months ago... and now I have received a letter that my payment will go up for a year due to an underpaid Escrow fee.
I don't understand this. How can they just arbitrarily (or so it seems to me) assess another fee. The letter only lists is as Miscellaneous Escrow. Do I really have to pay this? do they not have to explain in more detail?
I have a 30 yr FHA loan... with set fees... no ARMs.
I just closed on my home less than 5 months ago. The mortgage was sold about 3 months ago... and now I have received a letter that my payment will go up for a year due to an underpaid Escrow fee.
I don't understand this. How can they just arbitrarily (or so it seems to me) assess another fee. The letter only lists is as Miscellaneous Escrow. Do I really have to pay this? do they not have to explain in more detail?
I have a 30 yr FHA loan... with set fees... no ARMs.
Okay, it's one thing to have an unidentified fee, but completely another if the tax escrow is short, which sounds like the issue here. This happens when the tax rate goes up because a property was reassessed. New construction by any chance? Very common. The property you purchased was being taxed as land and the minute your occupancy permit was issued the real estate assessor's office was tipped off there was improved land and they went running out and reassessed and updated the tax bill.
So, what happened is your tax bill was short, so now you are being charged the difference that they lender paid on your behalf. They should have given you the opportunity to pay a lump sum.
Sorry, but rising taxes are part of home ownership. No laws were broken here (if this is what happened) and I promise you, this won't be the last time it happens over the life of your loan. The flip side is you may actually get a refund one year.
Call them. Its likely your real estate taxes. Look at your closing paperwork and see what it had as an estimate for your taxes. Next, visit city hall and find out what your taxes are per year.
If they match, great. Call the bank and let them know they made an error.
If they dont match, this is the reason why the payment just went up.
Remember that the escrow for taxes is usually collected as if there are 14 months in the year (meaning that they over collect). Yours may have been miscalculated.
I just closed on my home less than 5 months ago. The mortgage was sold about 3 months ago... and now I have received a letter that my payment will go up for a year due to an underpaid Escrow fee.
I don't understand this. How can they just arbitrarily (or so it seems to me) assess another fee. The letter only lists is as Miscellaneous Escrow. Do I really have to pay this? do they not have to explain in more detail?
I have a 30 yr FHA loan... with set fees... no ARMs.
Your monthly payment will be adjusted every year due to escrowing for your real estate taxes and your homeowner's insurance. The amount due for those two items changes every year. The lender does an escrow analysis every year. If your taxes and/or insurance goes up, your payment goes up.
Since your loan is so new, I am guessing that maybe the original lender did not hold back enough funds at closing to properly fund your escrow account which was then picked up on by the new lender when they did their yearly analysis.
Call them. Its likely your real estate taxes. Look at your closing paperwork and see what it had as an estimate for your taxes. Next, visit city hall and find out what your taxes are per year.
If they match, great. Call the bank and let them know they made an error.
If they dont match, this is the reason why the payment just went up.
Agreed, except you can usually look up the tax bill on line, and avoid the visit to city hall.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
