another advice needed thread.

[Ellis]

I've looked but to no avail. If there are discrepancies in if a person paying mortgage and the escrow is short, why is the person paying a constant mortgage the one that pays?

 

[GodFearinGunTotin]

What are they doing? Coming back and saying they need more money for insurance or taxes? They typically estimate those sorts of things and if they underestimate, you get to make up the shortfall. You still owe the amount the insurance, taxes, etc. cost. You just didn't pay in enough with each payment, so they even-up once per year to make up the difference.

 

[actaeon277]

You are paying a constant "mortgage".
NOT a constant "escrow".
Insurance and taxes change. And as mentioned above, they are estimated by the escrow company.

 

[Ellis]

Thanks. I'm not too familiar with escrow yet and didn't know that. I'm just helping pay my half of living where I am. It was kinda hard to take at first why I had to pay an extra $80 per month now.

 

[actaeon277]

A year later, if they collect TOO much, you will then get a refund check on the amount they think they over collected.

 

[GodFearinGunTotin]

Thanks. I'm not too familiar with escrow yet and didn't know that. I'm just helping pay my half of living where I am. It was kinda hard to take at first why I had to pay an extra $80 per month now.

They should send you a statement that would explain the charges, the amounts the escrow paid, and how they account for the shortage(s) or overage(s)...Yeah, it's possible the next year they'll reduce it some, if they're overcharging you now.

 

[Cameramonkey]

I got it too. You have to read the fine print, which is confusing as hell VERY carefully. What is happening is your taxes and insurance have increased above what was estimated. They collected based on x but eventually had to pay x and then some. Now you are in the hole.

In our case, its the second increase since the May bill. Nothing catastrophic, but still... We are going to be in the black in our escrow account by $0.04 after the next payment. They are required to have it funded at something like 1/6th the monthly payment at all times or something like that. ( I SAID it was confusing)

So we pay another $80 with this payment and our monthly only jumps another $10. Or we sit here and they raise it $25/mo until its caught up.

I still like it better than scrounging up the property taxes every 6, homeowners every 12, etc. Its easier to budget. (without an additional fee)

 

[SSGSAD]

Thanks. I'm not too familiar with escrow yet and didn't know that. I'm just helping pay my half of living where I am. It was kinda hard to take at first why I had to pay an extra $80 per month now.

The Mortgage Co., SHOULD adjust it automatically, every year .....

My mortgage, changed every year for two or three years, then it finally settled down .....

 

[Ellis]

The letter that came in gave us two options, pay $2k+ before 8/1/15 or pay extra $160/ month till shortage caught up.

 

[actaeon277]

The letter that came in gave us two options, pay $2k+ before 8/1/15 or pay extra $160/ month till shortage caught up.

Wow. That's pretty serious. They musta really underestimated, or your taxes went up pretty high.

 

[GodFearinGunTotin]

The letter that came in gave us two options, pay $2k+ before 8/1/15 or pay extra $160/ month till shortage caught up.

Wow. That's pretty serious. They musta really underestimated, or your taxes went up pretty high.

Wow...I don't think I ever had one be off by that much. Insurance company raise your rates or something?

 

[bulletsmith]

Not unusual for this in the first couple of years too. As mentioned, it usually settles down and remains more constant.

 

[Ellis]

I'm on the edge of thinking it's because the mortgage company we had was bought out by a different company within the last year. Again I'm not too familiar with all this or on the mortgage, just splitting while I live here.

 

[RobbyMaQ]

That seems high. Escrow is completely out of mortgage hands (sorta). it's a totally separate account for insurance, taxes, etc...
I've had a few hundred dollars increase, or slight decrease (sometimes it takes 2 years to 'level out').
There some issue with back taxes being found out or something?

 

[Cameramonkey]

I'd make them document it and explain the significant discrepancy. I've never had one go that crazy unless something drastic happened.

Im no accountant but that's a Huuuuuge red flag.

 

[Ellis]

That seems high. Escrow is completely out of mortgage hands (sorta). it's a totally separate account for insurance, taxes, etc...
I've had a few hundred dollars increase, or slight decrease (sometimes it takes 2 years to 'level out').
There some issue with back taxes being found out or something?

nothing found in the letter. It does state in an almost blacked out (barely legible) portion defining shortage. Like gfgt said in the first response it does state tax and insurance premium increase.

 

[Cameramonkey]

nothing found in the letter. It does state in an almost blacked out (barely legible) portion defining shortage. Like gfgt said in the first response it does state tax and insurance premium increase.

Chase it. Get a before and after for everything, then contact the relevant payees to find out exactly why things spiked. They should be able to explain it to you better than the mortgage company... They just pay what they are told via the bills. You need to find out why the bills increased from the source(s)

 

[GodFearinGunTotin]

Chase it. Get a before and after for everything, then contact the relevant payees to find out exactly why things spiked. They should be able to explain it to you better than the mortgage company... They just pay what they are told via the bills. You need to find out why the bills increased from the source(s)

Yeah...I'm thinking you should have gotten statements from the insurance company and the city/county regarding the changes as well...probably several months ago.

 

[RobbyMaQ]

Just putting this out there, if this was turned into an investment property (ie rental) it is not unusual for taxes to escalate. In marion county, mine about doubled when I lost homestead credit.

 

[BugI02]

The letter that came in gave us two options, pay $2k+ before 8/1/15 or pay extra $160/ month till shortage caught up.

That seems WAY too high for an adjustment to an existing escrow account. IMO your property tax would have to double or insurance quadruple to generate that kind of an adjustment. I'd have a chat with the lender or account servicer.