they say there projecting next years increase should i pay or not
2006-08-03 13:10:38 · 5 answers · asked by gfhfgh g 2 in Business & Finance ➔ Taxes ➔ United States
Your mortgage company can require that you keep up to 2 1/2 times your anticpated tax/insurance balance in your escrow account at any time. If you have 20% equity in your property set it up with your mortgage company so you pay your own taxes.
2006-08-03 14:04:19 · answer #1 · answered by Daniel Z 6 · 0⤊ 0⤋
If the mortgage company is escrowing for your taxes and insurance, they perform a calculatioon at least once a year to project the next year's taxes and insurance.
Sometimes there is a bit of a shortfall from the prior year...sometimes there is an excess. You might be making up for a bit of a shortfall in this year's payments.
Do you have to pay it? Yes.
BUT...First you should call the mortgage company. Ask to speak to someone in the "escrow" department. Ask them to review the calculation manually, by a human. (its all done by computer...) Maybe upon review, your payment wil be less.
Good luck!
2006-08-03 13:35:17 · answer #2 · answered by Stephen B 3 · 0⤊ 0⤋
RESPA Section 10 lets lenders do what they need to to be able to pay what they need to pay. The shortage they have now may have been building up over the past few years. Without knowing the history of your ESCROW account it is hard to say what is going on. The ESCROW is part of your payment and if you dont pay the ENTIRE payment amount your payments will not post and you will become behid. Call the company and ask them to send you a payment history so you can see what has been going on with the escrow accoun.
2006-08-03 15:37:38 · answer #3 · answered by JOEYSMOM2 4 · 0⤊ 0⤋
That is the porblem with an escrow account. I can't be 100% certain but I think you have to pay. If your mortgage was set up with an escrow I don't know if you can cancel it. If you can I suggest you do it and just save that money each month to pay the taxes and insurance when they come due.
2006-08-03 13:17:43 · answer #4 · answered by Billy 4 · 0⤊ 0⤋
yes and they are correct they make no money off your real estate taxes. Your option is to pay your own real estate taxes seperate from your mortgage.
This is not fun to do. The bank is keeping track of it for you.
2006-08-03 13:20:50 · answer #5 · answered by Anonymous · 0⤊ 0⤋