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bcampbe7
10-12-2005, 09:54 AM
I am trying to get the award for the most off topic thread of the year :D

:rant:
Got an escrow statement yesterday. It is saying that we have a shortage of nearly $600. We did just refinance (same term, lower rate), but I would not think that refinancing would affect the escrow amount. Our insurance will probably increase about $50 this year.
Does the escrow company project a tax increase? I can't see where the $600 shortage is coming from.
Can someone explain this??? Basically our escrow has increase $50/month for whatever reason. :mad:
:rant:

milkmania
10-12-2005, 10:05 AM
I am trying to get the award for the most off topic thread of the year :D



do I smell a challenge?????http://deephousepage.com/smilies/tantrum.gif

bigmac
10-12-2005, 10:11 AM
I am trying to get the award for the most off topic thread of the year :D

:rant:
Got an escrow statement yesterday. It is saying that we have a shortage of nearly $600. We did just refinance (same term, lower rate), but I would not think that refinancing would affect the escrow amount. Our insurance will probably increase about $50 this year.
Does the escrow company project a tax increase? I can't see where the $600 shortage is coming from.
Can someone explain this??? Basically our escrow has increase $50/month for whatever reason. :mad:
:rant:

Over the years, I've nothing but trouble with those stupid escrow accounts. There was even one year several years ago where the mortgage company "forgot" to pay my homeowner's insurance. It left us with a very healthy escrow account, but would have been an incredible headache if we had happened to have a claim. Since that time, we have refused to escrow insurance and taxes to the mortgage lender and we receive the bills and pay them ourselves. The lender is responsible for getting the proof of tax payments from the county and the proof of insurance from my insurance agent. Even then, they sometimes screw it up, in which case we periodically get a threatening notice from the mortgage lender - easily resolved with a telephone call to my insurance agent.

You need to call your mortgage lender and get the details on your escrow account. You may have had a property tax increase, an insurance premium increase, or they may have just screwed up the accounting. Often, that information is not accounted to the mortgagee on any kind of regular statement and you need to find out where your escrow money is going - ie, how much your property taxes are, how much your insurance is. Your insurance company can provide you with your premium information, and your local tax authority can tell you your tax liability for the period in question.

djhuff
10-12-2005, 10:14 AM
another possibility, when you re-financed, the old mortgage had a seperate escrow account and that money may not have been transferred to the new account yet. (odd since you would normally pay any back escrow up front and get the other monies back)

bcampbe7
10-12-2005, 10:14 AM
Thanks BigMac...
I talked to a guy here at work and he was saying that his escrow increased about $700. He is in the same County but different city. I have a feeling that the taxes did increase as well as our home value. But I would put it past our mortgage company to screw-up. :mad:

btmag
10-12-2005, 10:28 AM
Bigmac and DJ are right. That's about all it can be.
You should call and ask what the extra is for.

LakePirate
10-12-2005, 10:35 AM
Be sure to check your closing documents on the new mortgage. My brothers former bank screwed up his escrow account and the wording in the closing document stated that they would not pay until 06. So his insurance in 05 was not paid and he had to come out of pocket for it. A simple typo causes a lot of headache.

You should have recieved a notice if your property tax went up. That notice should also state that they will contact your lendor and notify them of the change as well. However, we all know that the Gov't always gets the letters out in a timely manner.

east tx skier
10-12-2005, 10:35 AM
When it's happened to me, it's usually because taxes went up the year before or the ins. premium increased. They are about a year behind on the tax thing (projections), so it takes them a bit to catch up.

Workin' 4 Toys
10-12-2005, 10:57 AM
We also dropped the escrow account after too many mistakes. Now we take as much as we chose from our bank and they wire "our" amount into a money market of our choice monthly automatically. We then pay the tax bill and insurance out of that account.

bcampbe7
10-12-2005, 11:04 AM
I don't think our mortgage company will allow us to pay the taxes and insurance ourselves. Is this something that can be disputed?

Leroy
10-12-2005, 11:08 AM
There is also some law about the min balance they have to keep (wonder who pushed for that law). I had similar issue that the amounts and payments did not balance and they were building the min balance....

btmag
10-12-2005, 11:09 AM
Most won't let you until you have 20% equity in your home.
Our company won't.

bcampbe7
10-12-2005, 11:14 AM
Most won't let you until you have 20% equity in your home.
Our company won't.


We have 20% equity, at the very least...

btmag
10-12-2005, 11:34 AM
Our company will do what's called a escrow waiver,
where you are responsible for the taxes and insurance,
and they are not rolled into your payment. The rate
could be like a 1/8 higher though.
Whoever is doing your loan should be able to tell you
what the extra escrow money is for.

bcampbe7
10-12-2005, 11:35 AM
Our company will do what's called a escrow waiver,
where you are responsible for the taxes and insurance,
and they are not rolled into your payment. The rate
could be like a 1/8 higher though.
Whoever is doing your loan should be able to tell you
what the extra escrow money is for.


Thanks btmag. I am trying to contact our mortgage company now. This is what I am hearing, "high call volume could mean your hold time will be longer than 30 minutes." :eek:

btmag
10-12-2005, 11:38 AM
Don't you hate that!! :mad:
You must be using a very big company or online company.
I will keep watching the board to see how it comes out.

bcampbe7
10-12-2005, 12:05 PM
Don't you hate that!! :mad:
You must be using a very big company or online company.
I will keep watching the board to see how it comes out.


Yes and yes...

phecksel
10-12-2005, 12:10 PM
My favorite was the escrow being increase $50 per month, and at the same time they refunded $600 for excessive escrow balance! Then refused to re-analyze their cyphering, because the computer doesn't make mistakes :(

My current mortgage company worked with me to resolve an issue, and recalculated the escrow, significantly lowering the monthly amount.

stumbledog
10-12-2005, 12:16 PM
I have been refunded money from my escrow account, and then 6 months later (they usually do a yearly review the same time every year) been asked for it all back. I have had this happen with the last two houses we lived in. With our most recent mortgage we had the option of not having an escrow. This works much better.

No need to tie up money in a minimum balance and it also creates a nice little slush fund for Daddy.

djhuff
10-12-2005, 12:21 PM
I don't escrow, really out of necessity, was told that I needed to bring $4000 to closing for escrow fees, 1 hour before closing (on a refi) I told them where they could stick that, and ended up waiving escrow, but they still charged me a $400 account management fee to do nothing.

Thrall
10-12-2005, 02:18 PM
I've owned 5 different houses in the last 10-11 yrs and had my escrow acct screwed up for various reasons. Typically, you can't pay your ins and taxes yourself w/o verified 20% equity (downpayment, or recent appraisal).
I've tried both ways and the lender/bank seems to screw it up equally each way.
What you may be experiencing is a slight tax and insurance increase which would drop the req'd excess escrow to fall below their limit and need to make up the add'l escrow.

bcampbe7
10-12-2005, 03:02 PM
I finally got through to a live person!

I was informed that our 2004 assessment was off by $200+. They also require a balance of $380+ in the escrow account. This along with our 2005 assessment caused the approximate $600 difference.
I asked if I could go without having the escrow and was informed that since we just refinanced, I have to pay on the current mortgage for 12 months before they will allow us to not have an escrow. Then I will have to pay a $250 one-time fee to not have the escrow. Our rate and term will not change thereafter.

Thanks to everyone for your help and information. :cool: :toast:

kcflatlander
10-12-2005, 03:14 PM
Several things could have happened
1- If you were doing a cash out refi and you wanted as much cash as possible, the loan officer collected the minimums, probably told the lender that you were going to use the refund from your previous escrow account in addition to the impounds they collected at closing. This happens too often in a debt cons. refi. when a broker is used.

2- If you refied with the same lender, they missed the transfer and refunded the $$$ back to you instead of sending it to the new escrow account.

3- As others prev. mentioned in the thread, you had an increase in taxes or insurance.

Your HUD settlement statement will tell the whole story. Look at section 1000 where it lists "Reserves Deposited With Lender". This section will tell you exactly what they collected.

Who is to blame???? The loan officer and the new loan company. It is not the title companys fault, they can only do what is in writing from the lender and they must legally follow the closing instructions to the letter.

I'll wager a 12 pack that your loan officer jumped right in and blamed the title company.