U.S. CitiesCity-Data Forum Index
Covid-19 Information Page
Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
 [Register]
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.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-09-2018, 06:33 PM
 
1,514 posts, read 1,092,429 times
Reputation: 2010

Advertisements

Wells Fargo at it again...

Wife and I refinanced back during Brexit and snagged a 3.5% rate but the loan was sold to Wells Fargo.

Now they're messing with my Escrow and I'm honestly not sure what I can do.

We prepaid the first half of our 2018 taxes in 2017 $5,076.24... So you'd think we'd be refunded that amount. NOPE we're only just now getting a check back for the first 2 tax quarters and they're sending a check for only $3,311.72.

I called to try to figure out the difference and they said my taxes and insurance had increased which was projecting a shortage. Thing is, my taxes only increased $192 for the year and my insurance increased $100. So some how they're trying to justify shorting us $1,765 because of a $292 increase????

They're also saying my home owners insurance went from $654 to $1,431 but my homeowners was never $654. When I look at the Wells Fargo escrow account info it randomly shows they attempted to pull $654 in the middle of the year for insurance. I called my insurance provider and they don't see this at all, but could perfectly pinpoint all the other standard payments.

So now Wells Fargo is trying to say its the difference between $654 and $1,431.. which still doesn't Jive.

I love how easy having 1 monthly payment is, but I really think I need to figure out how to pull the escrow from Wells Fargo. I'm sick of the games.. They're a bank, so the more $ they have at any given time the more $ they can make. I think they do everything possible to just hang onto your $.
Rate this post positively Reply With Quote Quick reply to this message

 
Old 10-10-2018, 07:58 AM
 
4,961 posts, read 12,540,749 times
Reputation: 3759
Quote:
Originally Posted by ericp501 View Post
Wells Fargo at it again...

Wife and I refinanced back during Brexit and snagged a 3.5% rate but the loan was sold to Wells Fargo.

Now they're messing with my Escrow and I'm honestly not sure what I can do.

We prepaid the first half of our 2018 taxes in 2017 $5,076.24... So you'd think we'd be refunded that amount. NOPE we're only just now getting a check back for the first 2 tax quarters and they're sending a check for only $3,311.72.

I called to try to figure out the difference and they said my taxes and insurance had increased which was projecting a shortage. Thing is, my taxes only increased $192 for the year and my insurance increased $100. So some how they're trying to justify shorting us $1,765 because of a $292 increase????

They're also saying my home owners insurance went from $654 to $1,431 but my homeowners was never $654. When I look at the Wells Fargo escrow account info it randomly shows they attempted to pull $654 in the middle of the year for insurance. I called my insurance provider and they don't see this at all, but could perfectly pinpoint all the other standard payments.

So now Wells Fargo is trying to say its the difference between $654 and $1,431.. which still doesn't Jive.

I love how easy having 1 monthly payment is, but I really think I need to figure out how to pull the escrow from Wells Fargo. I'm sick of the games.. They're a bank, so the more $ they have at any given time the more $ they can make. I think they do everything possible to just hang onto your $.
Sorry, but I don't see how this would be considered "tricks" or anything near it. If you escrow you shouldn't have prepaid your taxes. Or, you could have cancelled your escrow account, prepaid your taxes and then paid them on your own going forward. Escrow accounts are not designed for someone to be prepaying their taxes. Is Wells Fargo supposed to try and individually accommodate millions of people who opted to do this?

You will get your money back next spring when WF does their annual escrow analysis.

In the meantime, you could see if you can cancel your escrow account right now. If so they will send you a check for the current balance and you can pay your own taxes and insurance going forward.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-11-2018, 07:01 AM
 
Location: Kansas City North
4,819 posts, read 8,230,000 times
Reputation: 8053
Quote:
Originally Posted by TimtheGuy View Post
Sorry, but I don't see how this would be considered "tricks" or anything near it. If you escrow you shouldn't have prepaid your taxes. Or, you could have cancelled your escrow account, prepaid your taxes and then paid them on your own going forward. Escrow accounts are not designed for someone to be prepaying their taxes. Is Wells Fargo supposed to try and individually accommodate millions of people who opted to do this?

You will get your money back next spring when WF does their annual escrow analysis.

In the meantime, you could see if you can cancel your escrow account right now. If so they will send you a check for the current balance and you can pay your own taxes and insurance going forward.
OP might see if WF will do a mid-year escrow analysis to get straightened out. I had a mortgage with BB&T and they would do an analysis any time if you asked them. Our annual analysis was in October and we paid taxes in December so I always had them do another one in January.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-11-2018, 10:07 AM
 
Location: Boise, ID
8,047 posts, read 25,293,373 times
Reputation: 9362
There is a very specific set of laws that controls exactly what they do and do not have to refund you. Your failure to understand that set of laws does not mean that they are "up to tricks".

They review what the tax/insurance bills were for the last 12 months. They are allowed to keep 1/6 of that amount as a buffer. So they review the escrow balances for each of those 12 months. The lowest balance of those 12 can be up to 1/6 of the taxes/insurance.

So yes, you prepaid for those taxes, but they don't care about that. They take taxes + insurance, divide by 6, then refund enough to make your lowest balance of the year that number. That is what they are allowed to do by law.

So if your taxes are $5076.24 x 2 and your insurance is $1431, they are allowed to keep $1930.58 as a cushion. Note that doesn't mean the current balance has to be $1930.58. It is the lowest balance for the last 12 months. So if the account never got that low, they have to refund you the difference between your lowest balance and $1930.58.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-15-2018, 07:01 AM
 
Location: MID ATLANTIC
8,140 posts, read 19,989,830 times
Reputation: 9382
^^^^^
What Lacerta said.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-15-2018, 07:12 AM
 
3,965 posts, read 1,638,301 times
Reputation: 10239
Is there any way you can get rid of the escrow account? It might be harder now that interest rates are rising (they make money on the "float" in escrow accounts and if rates increase it's worth their while to collect escrow and make tax and insurance payments). I had two mortgages with WF (original and a refinance) with no escrow, and my current mortgage with another company is also no escrow. VERY liberating- and I get 2% cash back when I pay my insurance by credit card!
Rate this post positively Reply With Quote Quick reply to this message
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.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate > Mortgages
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2020, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top