Posted on: 08th Jul, 2010 06:17 am
My sister's loan was sold to another mortgage company. She kept making the same payment, thinking that her escrow was still being collected. However, when she went to pay her taxes, she found out that the new company did not escrow. Now they are giving her 1 month to pay and will not adjust her account so that the "extra" money she paid can be used for taxes. Can they do this? Is there anything she can do? Legally or otherwise?
Hi tommyp,
As there was no escrow account, the extra amount went towards the loan and not towards the taxes. However, the lender should have informed her that there is no escrow account. She can contact an attorney and check out whether or not she can take any legal actions against the lender. As far as the taxes are concerned, she should pay it off on time or the tax department may place a lien on her property.
Thanks,
Jerry
As there was no escrow account, the extra amount went towards the loan and not towards the taxes. However, the lender should have informed her that there is no escrow account. She can contact an attorney and check out whether or not she can take any legal actions against the lender. As far as the taxes are concerned, she should pay it off on time or the tax department may place a lien on her property.
Thanks,
Jerry