My husband and I just bought our house about 3 months. Ago. So we have paid 2 payments. The other day we revieved a letter from our mortgage co. saying that we need to pay 2,200 up front plus they are rasing our mortgage payment by 150.00 a month which goes in effect in less then 2 weeks from the time we got the letter. Also, if we do not pay the 2,200 up front then our payments go up 300 a month for the next year. All of this is due to the screw up from the title company. Our taxes on our house is about 3,000 a year. And we need to have a set amount in the escrow account at all times. When we went into settlement the title company did not put enough money into the account. Nor did they estimate the taxes right(1,500 instead of 3,000) I am at the point of suing the title company, this is all over a very simple error on their part. Is there anything I can do legally?

Frankly, no. Even though they made a mistake in calculating the Escrow, this is money you would have had to pay if they hadn't. Were you aware of the taxes etc?

Really no it is your and your attorneys responsibility to review what they do. And taxes are always estimated to start with.

I was aware of the taxes we knew the assessment was 2,900 so did the title co. Our mortgage started our 140.00 more a month but some how when we went to settlement they said that it had dropped, we had no idea why because nothing had changed. So it should have remained the same not went down the 140

So you wondered about the drop and didn't question it. Another reason why you don't have grounds for a suit.

It's a long shot, but you might ask the mortgage company if you can manage the escrow yourself. Some lenders will release you. I'm fortunate that my lender released me so I can manage it myself.

I am thrown in the same situation. Except I owe over $7,000 now. They bumped my mortgage to $1700 a month which is more than double what I pay now. I called the mortgage company to ask them about the low mortgage payments when we received our first one and they assured us they were correct, which obviously they are not. We were supposed to be paying $400/mo for escrow and we were only paying $100. I'm sorry for the situation.

Our solution:
We refinanced with the mortgage company. We dropped from a 7% interest to a 4.5% interest and rolling the escrow fees into the loan. It sucks, but it's better than nothing. So now we are paying a little over $100 less than what we were "supposed" to be paying.

Good luck! :)