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Barrister
Barrister, Lawyer
Category: Real Estate Law
Satisfied Customers: 34769
Experience:  16 years real estate, Realtor. Landlord 26 years
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3yrs ago I refinanced my house and paid $1470a mo. A year

Customer Question

3yrs ago I refinanced my house and paid $1470a mo. A year later another mortgage co. bought that mortgage and raised my mo. payment $160 a mo. saying I was behind in escrow. Taxes went up $500a yr. They said if I paid an extra $160 a mo. for one yr. it would be caught up and go back to $1470. It's been 2 yrs. now and nothing has changed . Is this legal? Can somebody help me?(###) ###-####
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Barrister replied 1 year ago.

Hello and welcome! My name is ***** ***** I will try my level best to help with your situation or get you to someone who can.

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Have you contacted the bank since the payment went up after that one year period to ask why the payment hasn't returned to the $1470?

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If so, what was their response?

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Is your mortgage company local or are they a national lender?

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Does the mortgage company escrow out for taxes as well as insurance?

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If so do you know if your insurance and taxes have both gone up each year?

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thanks

Barrister

Customer: replied 1 year ago.
I talked to Ocwen mortgage co. and they said that I was behind in escrow. That is why it went up. When I refinanced 3 yrs. ago I had to pay 6 mos. escrow up front' so I don't know how I can be behind. Yes , my property tax went up $500 a yr. and homeowners ins. Went up $50 a yr but that's no where near $160a mo. Ocwen said if I paid $1100 up front it would drop my payment to $1513 a mo. which was including the increase in taxes and ins. I didn't have the money.
Customer: replied 1 year ago.
L
Customer: replied 1 year ago.
Will I get a response?
Expert:  Barrister replied 1 year ago.

Ok, by law the mortgage company is only allowed to escrow out a certain amount of money each year to hold for taxes and insurance and if they go over that amount, they have to refund it to you or reduce your escrow payment amount.

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Under the RESPA laws, there could be a couple of reasons why your servicer is charging more for your escrow account. First, your bills have gone up and the account changed to reflect that. The servicer could have changed the amount of cushion to the maximum amount allowed by RESPA. Check your statement from the servicer. You may also want to check your loan documents to figure out what is the appropriate cushion. If the mortgage loan documents are silent on the amount of the cushion or pre-accrual practices, then the RESPA "two month" limits apply, unless state law provides for a lower amount.

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With that said, the only way to know exactly what happened is to contact the mortgage company and request an escrow breakdown that shows exactly what the payment goes to. They should be able to send you a chart that shows the disbursements and then how the escrow amounts build up over the year and then are paid out for the bills. That will determine what their maximum amount that they can withhold will be..

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thanks

Barrister

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