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Company Loan Type APR Est. Pmt.

Escrow Shortage - due to bankruptcy of first mortg lender

Posted on: 10th Mar, 2011 11:30 am
I had a mortgage for a piece of real estate (RE) in NE. The first mortgage lender and I had never had any issues with payment or escrow account. The first mortgage company goes bankrupt and sells to another company. Prior to the full transfer of loans, the first mtg company attempts to pay my taxes on the RE held as collateral in NE. Two checks come back NSF and the taxes are not paid. When the new mtg company gets the loan and begins receiving my payments etc...they find the taxes are not current on the collateral. The second mtg company pays the taxes from my current escrow account which runs me short on current taxes. However, I am now current on the taxes for the RE in NE.

The second mtg company begins raising my payment amount and sends me escrow shortage coupons to cover the shortage in my escrow account. I am NOT short in escrow and my payments should NOT have been increased to pay for the tax money a second time. Why am I being charged a second time for taxes already paid in the loan payments to the first tax company of which they evidently lost in bankruptcy? I am not responsible for this...they owe me my money back for the extra paid.
you are in a tough situation. if the second mortgage lender finds that the taxes are not paid, then he will increase the escrow and send you the escrow shortage coupons. contact a real estate attorney and check out what he has to say in this matter.
Posted on: 11th Mar, 2011 01:58 am
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