Posted on: 20th Jun, 2008 10:32 am
Guys,
I have an impounded account and I want to change that to non-impounded but my lender Wachovia says that because I am over 85% LTV, they will not approve it. This is adding on almost $1000 per month to my payment and it's killing me. I have no problem paying the taxes at the end of the year but I would rather have a lower payment right now. Anyone have any advise as to how to approach the lender for them to change this for me?
I have an impounded account and I want to change that to non-impounded but my lender Wachovia says that because I am over 85% LTV, they will not approve it. This is adding on almost $1000 per month to my payment and it's killing me. I have no problem paying the taxes at the end of the year but I would rather have a lower payment right now. Anyone have any advise as to how to approach the lender for them to change this for me?
chances are negligible that you'll be able to sway the bank. with your ltv being high, wachovia wants assurances that the taxes get paid and the only way to do that is with an escrow account.
what most folk don't know is that in the event of a foreclosure, or a disaster, or any claim on the property; that the first person to get his money is the tax man. that's right...number 1 is the tax man; number 2 is the mortgage lender; number 3 and so on is whoever is next in line and so on.
so it is critical to a lender to be assured that the taxes are paid, since they will get in the way of any proceeds to be had at the time a home is sold or foreclosed upon.
what most folk don't know is that in the event of a foreclosure, or a disaster, or any claim on the property; that the first person to get his money is the tax man. that's right...number 1 is the tax man; number 2 is the mortgage lender; number 3 and so on is whoever is next in line and so on.
so it is critical to a lender to be assured that the taxes are paid, since they will get in the way of any proceeds to be had at the time a home is sold or foreclosed upon.
George is very right...one way or another the tax man wins! The tax man does put Wachovia in 2nd position its true.
How new is this loan?
Did you explain to Wachovia that you cannot afford this payment and fear it will force you into foreclosure?
:?:
How new is this loan?
Did you explain to Wachovia that you cannot afford this payment and fear it will force you into foreclosure?
:?:
Hi abaniko.
Welcome to the forum.
As far as I know it is very difficult for even the lenders to cancel the Escrow Impound Account once it is placed. Though there are few states which allow the borrowers to set up separate account for the insurance and property tax. These accounts are called pledge account. This must be set up before you close on the house. But as you have the escrow account you may not be able to cancel the escrow account.
Fell free to ask if you have any further questions.
Best of luck,
Larry
Welcome to the forum.
As far as I know it is very difficult for even the lenders to cancel the Escrow Impound Account once it is placed. Though there are few states which allow the borrowers to set up separate account for the insurance and property tax. These accounts are called pledge account. This must be set up before you close on the house. But as you have the escrow account you may not be able to cancel the escrow account.
Fell free to ask if you have any further questions.
Best of luck,
Larry
Thanks for the info everyone even though it's not good news. The loan will be 1 year old this September. I have made several calls already to Wachovia to ask for help but they will not budge. Seems you have to already be in trouble in their eyes for them to take notice. I am going to keep trying though.
Thanks for the info everyone even though it's not good news. The loan will be 1 year old this September. I have made several calls already to Wachovia to ask for help but they will not budge. Seems you have to already be in trouble in their eyes for them to take notice. I am going to keep trying though.
Unfortunately that is a stance many banks are taking.
Good Luck I hope you figure something out
Brian
Good Luck I hope you figure something out
Brian
