Mortgage sold new lender raised payments

[mitspydergst]

What is the name of your state? washington

Our loan was recently sold to a new lender. Yesterday we received an escrow statement telling us they have recalculated our loan and we are now behind $1800.00 in our escrow account. Because of this our monthly payment of $1600.00 a month we go up to $1800.00. We were told that we can pay the $1800.00 shortage in full but even if we do our payments will still go up $100.00 a month.

We have owned our home for 4 years have never been late or missed a payment. We do not have any late payments, charge offs etc.. on our credit. Our loan also has been sold to 3 different lenders and have never had our payments raised. Is this legal?

Thanks

 

[LittleNapolean]

What is the name of your state? washington

Our loan was recently sold to a new lender. Yesterday we received an escrow statement telling us they have recalculated our loan and we are now behind $1800.00 in our escrow account. Because of this our monthly payment of $1600.00 a month we go up to $1800.00. We were told that we can pay the $1800.00 shortage in full but even if we do our payments will still go up $100.00 a month.

We have owned our home for 4 years have never been late or missed a payment. We do not have any late payments, charge offs etc.. on our credit. Our loan also has been sold to 3 different lenders and have never had our payments raised. Is this legal?

Thanks

Yes, it's legal to adjust your payment to account for escrow shortages. It's not a penalty and has nothing to do with your past payment record. Home owners insurance and real estate taxes are commonly paid out of escrow accounts and if those have increased it would account for your escrow shortfall.

 

[mitspydergst]

Thank-you for your quick response. We have checked our insurance it hasnt gone up. Our taxes went from $3092.00 per year to $3265.00 but our payments went up $200.00 per month that is $2400.00 extra per year. How are they able to raise it that much ?

 

[LittleNapolean]

Thank-you for your quick response. We have checked our insurance it hasnt gone up. Our taxes went from $3092.00 per year to $3265.00 but our payments went up $200.00 per month that is $2400.00 extra per year. How are they able to raise it that much ?

They should have sent you a detailed escrow analysis which should have shown all the calculations that went into your new escrow payment. The $200/mo is partly to catch up with a past underpayment into your escrow account (you are probably running a deficit) and partly to keep you current with your future escrow requirements.

Without seeing your detailed escrow analysis I can't know why your escrow payment went up as much as it did. It's quite possible that your real estate taxes have been increasing for the past 4 years and it wasn't until recently that the people handling your mortgage looked at the escrow account.

 

[nextwife]

The adjustment likely includes an amount for a further potential increase. So there is the adjustment for the past increase, and a safety net of an amount to cover any increase that may occur this year.

BTW- I WISH my property taxes were only $3300! Mine are over $5200 a year.