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    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
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    #1

    Oct 15, 2015, 12:22 PM
    Escow Account
    I see on the news a handicap person had a modification of her mortgage.
    Afterwards her mortgage kept going up month after month. She learned it was from the bank escrow account to help pay insurance on the $20,000 mortgage. She pays no property taxes because she is handicap.
    I wonder if the bank can force this matter. I say that because I pay my own Insurance and taxes from My own fund. Been doing it for years, after chuck told me. That way I get some nice interest during the year. The mortgage company never said a thing to me.
    What are your views.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,277, Reputation: 7690
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    #2

    Oct 15, 2015, 12:29 PM
    It will depend on the mortgage terms and conditions that were agreed to. Also what insurance. Property insurance, even if paid though escrow is something she should be buying. Unless she did not have any, and the loan company "bought" the insurance for her. But property insurance should be annual, so there should be no changes to escrow but once a year. Also was this "insurance" term life insurance to pay off the loan in case of death, many lenders try to add this to every loan, because of the high commissions.
    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
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    #3

    Oct 15, 2015, 12:45 PM
    Very good. I tried myself to lower my homeowners insurance. But the broker low balled me on the quote.Last minute hike the premium, and change the conditions.
    Despite getting a wind mitigation inspection. So I am compelled to stay with my
    Existing carrier. Having a older home is particular difficult to get homeowners insurance in Florida. Thanks for the advice
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
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    #4

    Oct 15, 2015, 02:00 PM
    I went through this fight several years ago. When she did the refi, she probably agreed to have the bank handle the Escrow. The bank figures the Escrow based on annual needs and they base the Escrow amount on making sure it never falls below 2 months worth of payments.

    But it shouldn't be going up month after month. Someone needs to review the mortgage papers and the mortgage statements to see what is going on.
    pastor1189's Avatar
    pastor1189 Posts: 1,538, Reputation: 3
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    #5

    Oct 15, 2015, 02:48 PM
    This women lives on Social Security disability cannot work any longer. By doctor's order. The spine was severely damage in an accident,The $12.00 increase every month for the last three months, is a hardship for her. Looking for somebody to advise her. The mortgage of course is fixed. No problem there.
    ScottGem's Avatar
    ScottGem Posts: 64,970, Reputation: 6056
    Computer Expert and Renaissance Man
     
    #6

    Oct 15, 2015, 03:29 PM
    Like I said, Banks are allowed to recalculate the Escrow payment annually. So have the escrow increase each month doesn't sound right. Again, someone needs to look at the statements and see what the extra amount is for and then talk to the servicer about why it keeps increasing.

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