LoveToKnow Mortgage:AllComments

From LoveToKnow Mortgage

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Ron, it depends on what exactly you consider "questionable" with regards to the escrow account. If you feel as though your escrow company is doing something illegal, I suggest you contact a competent attorney to assist you.

-- Contributed by: Tamsen Butler

To whom it may concern,

When an escrow agent does an escrow which has instructions that are questionable and out of the normal like giving the buyer the grant deed without title insurance and conveying full property, should that agent at least contact the seller and tell them? Is an agent suppose to contact a seller at least one time through the escrow? If you could help me with these questions I would appreciate it (don't worry, I will not hold you legally bound buy the answer, I just need to know)

Thank You

-- Contributed by: Ecrow agent's duties?

William, your lender probably sent you a letter detailing the escrow shortage and detailing your options for either paying the shortage as a lump sum or instead have the shortage attached to future payments. If you did not receive a letter with these details, contact your lender for clarification.

-- Contributed by: Tamsen Butler

My bank just increased my payment by 500.00 a month. because my ecsrow was short. if i pay the shortage. will the house payment increse of still or stay the same?

-- Contributed by: WILLIAM

Raymond, contact your lender to find out what the check was for. It may be an escrow surplus that was sent to you.

-- Contributed by: Tamsen Butler

The bank that I have my mortgage send me a check that described as escrow. Does that mean that I have to pay my premium insurance and taxes myself.

-- Contributed by: Raymond

Escrow adjustments occur when the real estate taxes and/or insurance payments go up or down, or are expected to go up or down. This changes the amount of money needed to fully fund the escrow account to pay these obligations. You were probably given the option to either pay the shortage in full or to have your mortgage payment increase. If you have the money available to pay the shortage then pay it, otherwise you can expect your mortgage payment to increase. This increase, by the way, has nothing to do with the principal payment on your mortgage, which is set to adjust later in the year.

Escrow shortages are fairly common. Contact your lender for clarification regarding your options.

-- Contributed by: Tamsen Butler

Our lender that we have had for just over two years, just sent us a bill, for an "escrow adjustment" and say we can pay it in 12 months or pay it in "one lump". We were paying $308.04 per month, and now they say we need to pay $333.03 for our regular escrow payments, but we need to catch up on the $427.75 owed. So now our mortgage payment will be adjusted. We are on an ARM, and it will go up/down in June '09...does this have something to do with the difference? Do we have to pay this "escrow shortage"? All combined is $727.75 for this next year...is this OK?

-- Contributed by: lslewis

This is really a situation where you should consult an attorney. Be sure to bring all the do...entation you have to the meeting with the attorney.

-- Contributed by: Tamsen Butler

I have a question. We flipped a house w/ another investor. At close of selling the property, the other investor could not do...ent costs he claimed associated with the house. THe house closed to the new buyer, w/ an escrow between the 2 investors still being open. Is there a date this needs to be resolved by, if the 1 investor cannot validate cost claims? He is claiming that the funds will go to a lawyer fund and their is a time limit after closing. - THis is in gwinnett county, ga. We no longer trust the 2nd investor and his information. Can you please direct us where to locate proper info? Thanks

-- Contributed by: TML

Terry, it depends on the company servicing your escrow account. You may be able to request a check or they may hold on to it and hopefully give you some interest (although it's usually minimal interest given). At the very least they should reduce your monthly escrow obligation so you don't have such a huge remainder next year. Contact the servicer and find out what your options are.

-- Contributed by: Tamsen Butler

after my escrow pays my taxes (ins. already paid) ill have around 600.00 in my account.Will I get any of it back or will they hold it for some reason?

-- Contributed by: terry

MC, whether or not you are required to have an escrow account is based on what the original agreement was when you obtained the mortgage loan. While some lenders don't seem to object to borrowers handling their own taxes and insurance other lenders may charge hefty fees for this privilege. The best way to find out whether or not you're required to have an escrow account is to pull out the original loan paperwork.

Were you recently notified of a tax decrease, or is this something that has been in effect for some time? Most mortgage servicing departments adjust escrow annually, so if the tax drop is relatively recent you may not see a change in the amount of money taken from your payment for tax escrow until the account is readjusted.

-- Contributed by: Tamsen Butler

Now what with the infromation here, have an escrow though a company who seems to not be paying attention to the severe tax drop what can I do get these guys to figure it out, done the writing a letter to get through to them. We should have enough of the house paid that we dont' even have to have one although when we bought the house we were told we did. Which way is it

-- Contributed by: mc

johan - just been looking on the car sales websites - discovered an advert to good to be true - further enquiries led to a company that is a known escrow scam - BEWARE !!

-- Contributed by: marcus

Johan, when making any purchase online - especially when it's for a costly item - it's best to be cautious. There are actually a good amount of escrow companies to choose from, and I would absolutely recommend that you utilize an escrow service for this purchase. You should also have a full inspection done before you buy the car; many inspection companies guarantee cars that they certify after inspecting, so this is a good safeguard. Remember the old saying while you're in the process of buying your car: "If it seems too good to be true, it probably is."

-- Contributed by: Tamsen Butler

I'm about to purchase a car online within the next 7 days, saw an add online and responded to it. The guy suggested and BP program, I suggested only if its a recognized company like escrow, however I'm nervous as the car seems to good to be true for the price, is their anything i should be weiry of even whilst using an escrow service...

-- Contributed by: Johan

Good.

-- Contributed by: Philip Robbins

Patra and Ganesh, thank you for the comments!

-- Contributed by: Tamsen Butler

Helpful

-- Contributed by: Patra

Useful.

-- Contributed by: ganesh kumar
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