Compare Mortgage Quotes

Refinance Rates for Today

Please enable JavaScript for the best experience.

In the mean time, check out our refinance rates!

Company Loan Type APR Est. Pmt.

Paper says ins and prop tax are escrowed but escrow is empty

Posted on: 24th Nov, 2008 06:55 pm
I can prove that both the county tax office and my insurance agent have paperwork showing they may expect their money to come from escrow and of course I can prove there's no money there. We were told our house insurance and property taxes were included in the payment but they are not. We were told the loan was a fixed rate. Come to find out it was only fixed for 2 years, and worse we learned we have a 50 year loan with a balloon due at the end of 30. AND, - I'm not clear on this concept - every time my payment goes up my principle rises because it's re-amortized every time? Negative amortization?

Couldn't I simply US Snail mail the lender a couple certified letters telling them I think I have a case for fraud and if they won't respond and resolve the issue I'll register the deed in their name? Then hope they don't respond? And do just that?
hi brian!

welcome to forums!

i think you should immediately talk to the lender and check what's really happening. i think this is a case of mortgage fraud as the lender has not informed you properly about the terms and conditions of the mortgage. you can ask the lender if they have paid the property taxes and insurance from the escrow or not. also ask for an explanation regarding the 50 year loan. if you do not get satisfactory answer from the lender, then you can definitely consult a lawyer dealing with mortgage fraud.

you can also try refinancing the loan to get favorable terms and conditions if possible. it is not necessary to refinance the loan from the same lender and you should not even do it. you can check with other lenders refinance the loan.

you cannot simple deed back the property to the lender. either the lender should foreclose it or you should apply for a deed in lieu. though its the lender's fault, still you will have to send a hardship letter to the lender and follow the procedure.

feel free to ask if you have further queries.

sussane
Posted on: 24th Nov, 2008 07:30 pm
Page loaded in 0.072 seconds.