hold off on paying my escrow for my taxes and insurance.. they are already paid up to date i am just tryn to get a quick fix to have an extra grand a month to pay off some credit cards.. tryn to find ways to get ahead.
2007-01-19 04:38:48 · 6 answers · asked by hooteehoo2u 2 in Business & Finance ➔ Renting & Real Estate
I am sure the specifics are spelled out somewhere in your loan documents, finding them is the hard part. Most mortgage loans work the same way. Payments are first applied to late fees/balances (if any) then to escrow (if any) then to interest then to principal. The simple answer is you cannot skip paying escrow for a few months.
If you send the lender a check for the amount of principal and interest only you will actually be paying escrow and your payments will be past due. Then the lender will impose late fees, default interest rate etc.
Sorry to tell you but this will not work.
2007-01-19 04:59:48 · answer #1 · answered by Adoptive Father 6 · 0⤊ 0⤋
1. Check your loan documents.
2. Assuming that you are required to pay the escrow payments and that is in the loan documents then any decision not to pay means you are in default of the agreement. A default is the first step to a foreclosure. The lender will take action. The penalties and legal costs will eat up any advantages you received by paying down the credit cards. At then end you would have spent more money in total.
3. Use a different solution. Find a part time job and pay the mortgage as planned plus make extra payments on the credit cards. You would reduce the debt and have no issues with your mortgage lender.
Note that if you could skip the escrow payments you would have to make a lump sum payment for the insurance and the taxes later in the year. With the second job you would not have any lump sum to deal with.
Even just a few months of extra income and payments on the credit cards would go a long way. Or you just stay long enough to get them paid off.
2007-01-20 07:49:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
if you don't pay the escrow, then the taxes and insurance won't be paid when they come due, which means your house could
be seized for nonpayment of taxes (happened to my friend and she lost her house after misplacing the bill). And if you don't have insurance the mortgage company will not provide a mortgage. insurance is a condition of the mortgage becasuse you are using the house/property as collateral for the mortgage.
this is not a good option.
better options are:
move to a cheaper place...
sell your car and get a cheaper one...
cancel cable tv etc.
take on a roommate
get a 2nd job
2007-01-19 12:48:22 · answer #3 · answered by Sufi 7 · 0⤊ 0⤋
Most lenders require that you maintain insurance on the property. If you don't pay your insurance they may have the right to go out and get insurance for the property and charge you for it. It will probably be at a much higher rate than you are already paying.
As far as your real estate taxes, don't go there. You could end up losing your property and whatever equity you have in it.
2007-01-19 18:09:44 · answer #4 · answered by lurkingonthirtyfourthstreet 3 · 0⤊ 0⤋
Don't do it. You may be in default on the loan as you have promised to pay the escrows. The escrow amts are pro-rated for the year and that will screw things up when they pay the tax bill and the ins. premium
2007-01-19 12:42:25 · answer #5 · answered by Anonymous · 2⤊ 0⤋
You'll get bit in the @ss when the taxes and insurance come due. Chances are you won't have it saved.
2007-01-19 12:46:35 · answer #6 · answered by up y 3 · 0⤊ 0⤋