My payment was 392.00 taxes separate. Now my payment is 12000. because I have a escrow account. Because of this I'm 90 days late , my income is only 1700. a month. How can they legally do this? Is there a agency that can help me? Who can I talk to? I'm in foreclosure now, I don't want to lose my house.
2007-07-02 05:56:01 · 6 answers · asked by sunnyday 1 in Business & Finance ➔ Renting & Real Estate
First, to calculate escrow, they should take what they anticipate your taxes to be and then divide by twelve. Multiply that by 14 (because they want you to have 2 extra months in escrow). Then, divide that amount by 12. That is how much extra you should be paying on a house note for the mortgage company to escrow for you. This really would not be much higher than what you shoud be setting aside each month for your taxes anyway. So, not sure why this would be the reason for foreclosure unless you had unpaid taxes when they took over.
You essentially ended up with an escrow deficit when they paid the taxes and they are raising the payment to catch up that balance PLUS to raise enough to pay when your taxes come due again.
I just went thru the same thing because my mortgage was sold to another morgage company and they pay taxes in December as opposed to the next February, which means for calendar year 2007, I will make two tax payments. Ethical? No. Legal? Apparently. My payment went up because of this.
2007-07-02 06:01:22 · answer #1 · answered by sortaclarksville 5 · 0⤊ 0⤋
It is common practice for them to pay the taxes if your credit is less then steller. They are protecting their investment. There should be no money added that is not owed. Your taxes are NOT 800 a month if your mortgage is only 392, so you are not making a lot of sense. The 800 should cover an entire year.
The only people you need to talk to are your bank. Again, it does not make sense that you are 90 days late, that is a LOT of time and you had 5100 in income in that period of time.
2007-07-02 13:06:20 · answer #2 · answered by Anonymous · 0⤊ 0⤋
well it sounds as though the taxes were still due after the date. Taxes become a lien on the property, the mortgage co is protecting itself for tax foreclosure. Yes, they can do this legally, as it is written in the Mortgage papers.Talk directly to Chase to see what kind of help or options they will allow.
2007-07-02 13:06:33 · answer #3 · answered by sandra 1 · 0⤊ 0⤋
Call Chase and talk to Customer Service and ask them the name of the person who can help you now. Also contact your real estate agent and ask to to explain the tax situation with you in person with all your paperwork. If he can't(most don't want too) call the Escrow Officer who worked on your transaction. They are very good at explaining how the taxes work.
I could explain but it is lengthy and needs more time than is given here.
2007-07-02 13:04:22 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If the loan wasn't set up with an impound account for taxes, of course you have to pay your taxes. ~
2007-07-02 13:06:15 · answer #5 · answered by Anonymous · 0⤊ 0⤋
How about a lawyer, or the legal aid society where you live?
2007-07-02 13:01:46 · answer #6 · answered by hottotrot1_usa 7 · 0⤊ 0⤋