| Author |
Message |
    
6yearrez
Citizen
Username: 6yearrez
Post Number: 143
Registered: 9-2001
| | Posted on Monday, February 27, 2006 - 10:57 pm: | 
|
I just saved a bundle of money on my homeowner's insurance by raising the deductible.
So, I call mortgage co. for reanalysis for which they charge me $10 (because its offcycle). Result? Monthly mortgage payment goes up $200/month because the re-analysis pulled in the recent tax hike and revealed my $1,900/year shortage. Although, they politely told me that if I paid them the $1,900 now, then I could save on my monthly payments. Hate escrow. |
Ace789nj
Citizen
Username: Ace789nj
Post Number: 286
Registered: 2-2005
| | Posted on Tuesday, February 28, 2006 - 12:47 am: |
|
No, you don't have to. I got tired of them screwing my payments, I had my escrow account deleted and now I pay my taxes and insurance on my own. Look into this. Almost everyone I asked said their bank, at on point or another, somehow messed up and and they were hit with either paying the shortage up front or adding it to the monthly tab for 6 months |
fiche
Citizen
Username: Fiche
Post Number: 77
Registered: 3-2002
| | Posted on Tuesday, February 28, 2006 - 8:34 am: |
|
The lender has the discretion to allow you to terminate your escrow account, but many will not do so. Real Estate taxes are a priority lien on the property and supercede the mortgage obligation. That means that your house can be foreclosed on for delinquent taxes and, if the house is sold at sheriff's sale for less than the total of the taxes and the mortgage obligation, the mortgage lender will receive only what is left after the taxes are paid. Therefore, the lender has a vested interest in ensuring the timely payment of the taxes.
As to insurance, you can understand why the lender would want to ensure that the insurance payments do not lapse.
By law, each lender must do a yearly escrow analysis. Your shortfall would have been discovered when the analysis was done and you would then be required to make up the difference. A monthly escrow payment will always rise each year because taxes rise each year. When you get your new tax bill, determine what the increase is and add an additional escrow payment each month so that you are not caught short when you receive your analysis.
|
sac
Supporter
Username: Sac
Post Number: 3179
Registered: 5-2001
| | Posted on Tuesday, February 28, 2006 - 8:49 am: |
|
My monthly escrow payment has gone down on a couple of occasions because it had been artificially inflated the year before to pay back one of those shortages. In fact, it went down almost $100 this year despite the inevitable tax increase. |
The Libertarian
Citizen
Username: Local_1_crew
Post Number: 1613
Registered: 3-2004
| | Posted on Tuesday, February 28, 2006 - 9:24 am: |
|
it is total nonsense that we have to pay "rent" to the government for property we supposedly own.
dont question escrow, question property taxes. |
Rastro
Citizen
Username: Rastro
Post Number: 2419
Registered: 5-2004
| | Posted on Tuesday, February 28, 2006 - 11:13 am: |
|
I thought that if you put down more than a ceratin percentage, you had no obligation to escrow taxes with your mortgage lender. I've never escrowed money, since I figure I have better things to do with it than loan it to my bank, which is already loaning ME money to buy the house. |
argon_smythe
Citizen
Username: Argon_smythe
Post Number: 763
Registered: 5-2001
| | Posted on Tuesday, February 28, 2006 - 11:13 am: |
|
Yeah talk about killing the messenger. How is getting out of escrow going to change the fact that your taxes have gone up?
|
hch
Citizen
Username: Hch
Post Number: 211
Registered: 8-2002
| | Posted on Tuesday, February 28, 2006 - 1:21 pm: |
|
If you own a certain percentage of equity in your home, then your mortgage company can not require escrow payments. I pay my own taxes and insurance and it's one of the best decisions I've made as a homeowner.
Contact your mortgage company and don't let them talk you out of it. My mortgage company tried very hard to include escrow in my last refi, forcing me to constantly remind them that I would not have an escrow account. |
Purplebug
Citizen
Username: Purplebug
Post Number: 66
Registered: 10-2005
| | Posted on Tuesday, February 28, 2006 - 1:50 pm: |
|
What percentage is this? Or where can I find if I meet the criteria? |
Rastro
Citizen
Username: Rastro
Post Number: 2437
Registered: 5-2004
| | Posted on Tuesday, February 28, 2006 - 2:09 pm: |
|
I believe it's 20%, but I would check with your mortgage company. |
Rob
Citizen
Username: Rob07040
Post Number: 44
Registered: 7-2003
| | Posted on Tuesday, February 28, 2006 - 3:53 pm: |
|
I'm no expert but I think you are confusing escrow with PMI (mortgage insurabce). PMI is required if you have less than 20% equity.
I too pay my own taxes. That was a condition I made when I bought my house. In my previous condo in Hoboken, I tried to get out of paying escrow but the bank would only let me do so if I refinanced. They wouldn't just 'change' the mortgage. I got the feeling this was pretty common. |
fiche
Citizen
Username: Fiche
Post Number: 78
Registered: 3-2002
| | Posted on Tuesday, February 28, 2006 - 3:58 pm: |
|
Better still, check your Mortgage and Note documents. They will spell out the lender's requirements.
I don't believe that you are correct HCH, if your mortgage provisions require an escrow, the amount of equity you have in your home is not going to change the requirements. However, the lender may be willing to allow you to stop having your taxes and insurance escrowed once you reach 80% loan to value ratio, but it is their decision. If they will not allow it, you can always refinance with a bank that does not require escrows.
|
Rastro
Citizen
Username: Rastro
Post Number: 2453
Registered: 5-2004
| | Posted on Tuesday, February 28, 2006 - 4:11 pm: |
|
Rob,
I probably am. Though I thought there was a minimum % required. It was so long ago.... |
Joe R.
Citizen
Username: Ragnatela
Post Number: 294
Registered: 6-2004
| | Posted on Tuesday, February 28, 2006 - 5:15 pm: |
|
I have my mortgage with PNC. No escrow. I didn't even have to ask. |
6yearrez
Citizen
Username: 6yearrez
Post Number: 144
Registered: 9-2001
| | Posted on Tuesday, February 28, 2006 - 9:44 pm: |
|
thanks to everyone who replied to my original post. good options to at least explore...6YR |
Closed: New threads not accepted on this page