4,000 from our mortgage company, the payment starting next month is going to go from 1,424.00 to 1,909.00 for 12 months, is there any way that the mortgage company would extend that out? I dont make alot of money, and that extra 500.00 is going to kill me.
2007-11-05 07:51:51 · 8 answers · asked by becca c 2 in Business & Finance ➔ Renting & Real Estate
It was raised because after we closed it was found out that we were in a "high risk flood zone" so the insurance went up dramatically, I mean I could throw up right now, it is legite, I am wondering if I would be wasting time asking for an extension longer than 12 months
2007-11-05 08:07:07 · update #1
Unfortunately, your lender will probably not give you an extension on getting your escrow paid up. Your shortage is calculated based on your current shortage PLUS your estimated shortage for the next year's expenses. Since they are paying out the $$ for your insurance and property taxes now, they will not give you more time to pay it back. The good news is that once you get your escrow account straightened out over the next 12 months, your payment should go down again to a normal level because you won't be making up the shortage any more.
2007-11-05 08:19:08 · answer #1 · answered by itsjustme 2 · 0⤊ 0⤋
Wait a sec this does not sound right. Every house that has a loan has a flood cert done before the closing to determine if you are in a flood zone, and how much your flood insurance will cost. If what you say is true I would be rip sh$t. This should not have happened, and someone else is liable. I would not take it, complain to the lender, they performed or sub-contratced the flood cert. Hire an attorney or if you cannot afford one, file a complaint with your states attorney general this seems deceptive. Sometimes over time like in Florida flood insurance can go up over time because of losses by insurance companies. Right after closing to learn about this, no way, its not right, you may have inadvertently signed a paper not knowing, oh well, good luck.
2007-11-05 11:47:50 · answer #2 · answered by stephen t 5 · 0⤊ 1⤋
The question is, why do you owe 4,000? What happen.
If it's a old/used house, the tax bill would have been prorated to the day of settlement.
If the property has been reassessed, I would talk with the government and find out what happen. This is a HUGE HUGE increase.
If it's a newly built home, I'm guessing you paid taxes only on the land at settlement and now the house itself has been assessed. Usually there is a tax levy taken from you at settlement. Check you HUD form to see if you already paid this. If so, the settlement company needs to pay this bill and inform the mortgage company. Otherwise, you need to pay this bill on time.
2007-11-05 08:00:14 · answer #3 · answered by Anonymous · 1⤊ 0⤋
The monthly escrow amount should be 1/12 of the annual taxes and/or insurance premium. How could it be $4000 short in just 4 months?
I think they need to explain this to you very clearly, because it isn't very logical. If it was the end of the year, and you owed a whole year's worth, maybe it would make sense, but your taxes must really be high for it to be that much off.
2007-11-05 08:01:34 · answer #4 · answered by Debdeb 7 · 0⤊ 0⤋
becca,
Escrow shortages the 1st and 2nd yrs are not unusual. no it can not be extended out because it is a yearly thing.
may i suggest a reading of '48 days to work u love' d.miller . a good book for going forward and plenty of fresh reference material. help u increase income outlook.
the other one is 'total money make over' d.ramsey helps our folks retain their cash.
spending less and getting more value from their paychecks.
our associates have a mandatory read of the books.
u are going to start living on less or pick up second jobs until u can increase ur yrly income.
sorry u got some hard times coming.
2007-11-05 08:01:47 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Your mortgage co did not get enough insurance. Insurance co. quote 2000 a year. Some one read th esurvey and saw a hous ein a 25 flood zone. the people you brought this house knew it because they were paying this large amount for insurance.
2007-11-05 08:49:31 · answer #6 · answered by Ralph N 5 · 0⤊ 0⤋
You might want to inquire of the lender just why they are increasing your escrow rather dramatically. Hopefully, they have legitimate reasons to do so. Feel free to call them and ask what it's all about. They may have made an error, and you may be able to get a reduction accordingly.
2007-11-05 07:56:45 · answer #7 · answered by acermill 7 · 2⤊ 0⤋
Your question is not a question and does not explain why your mortgage went up $500. I would like to help but...
2007-11-05 07:59:56 · answer #8 · answered by Anonymous · 0⤊ 1⤋