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My lender (2 months new) has increased my escrow twice. Can

Posted on: 03rd Dec, 2007 06:07 am
I closed loan docs knowing I was to pay a certain amount in escrow costs monthly. Since this new lender bought my loan 2 months ago they have increased the escrow costs each month. Who do I go to in order to find if they are frauding me?
well find out if your house insurance (hazard) and/or your property taxes have gone up! This is usually the case.

also, research the new lender to see if they're a reputable lender.
Posted on: 03rd Dec, 2007 08:21 am
I got with my Ins. agent and it is not going up for that. Taxes is where it is. I thought taxes were analyzed annually? Not monthly.
Posted on: 03rd Dec, 2007 08:28 am
call your new lender....and research them online before you call!
Posted on: 03rd Dec, 2007 08:30 am
OK, I will research. IF, I find they are shady then who can a file a complaint with?
Posted on: 03rd Dec, 2007 09:20 am
your state's commissioner of banks.

if it's a lender.....if it's a bank..then they will direct you to the federal.

normally, you can go to the state attorney's office for issues like this
Posted on: 03rd Dec, 2007 09:24 am
The lender only has the power you granted them in your purchase contract, mortgage (deed of trust), or promissory note. Read those contracts for the rights of the lender to raise the escrow amounts.
Posted on: 03rd Dec, 2007 10:50 am
Hi Trina,

Not all lenders are created equal when it comes to their ability to accurately set up escrow accounts. Each lender also has different calculations of what they require to be collected for escrows, that is why every time your mortgage is sold, they will ananlyze your escrow acct and make sure that it follows their formula.

It is odd that it has been changed twice, though. I would definitely call to see what is going on. On an up note...after a year, they will refund any unneeded escrow money, and after the first year of history, they get the formula right and your escrow acct should get more stable.

Kim
Posted on: 03rd Dec, 2007 08:12 pm
Thank you for the info.
Posted on: 04th Dec, 2007 08:34 am
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