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Chase paid taxes out of our escrow account which cause the…

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Hello, Chase paid taxes out of...
Hello,
Chase paid taxes out of our escrow account which cause the account to be negative. We did not request this, or authorize it, nor did they inform us. In addition, they ran the escrow analysis incorrectly, which shows an even greater deficit.
They want us to increase our monthly payment by $1200 to make up for their error. Now, since we have continued to pay the regular payment amount, they have stopped accepting our payment and will report a mortgage late.
Essentially they are holding our credit score hostige over their error. What recourse can I take?
Submitted: 7 months ago.Category: Consumer Protection Law
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Answered in 38 minutes by:
11/25/2017
Consumer Protection Lawyer: Law Educator, Esq., Lawyer replied 7 months ago
Law Educator, Esq.
Category: Consumer Protection Law
Satisfied Customers: 125,876
Experience: Attorney experienced in commercial litigation.
Verified

Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.

If your mortgage contract did not give them the authority in the contract to pay the taxes, you can pursue Chase for breach of contract in causing the negative escrow. The problem is once they paid the taxes they cannot get them back and as such you are still liable for reimbursing them for the payment. So, unfortunately, if Chase will not fix this escrow issue with you, you could sue for breach of contract if there is no clause in your mortgage that allows them to pay the taxes, but legally all the court can do is force them to stop paying the taxes and make them modify your mortgage to account for their error and damage it has caused your credit score.

You need to bring the annual escrow accounting to a local consumer protection law attorney along with the mortgage contract for review. If they violated the contract or have made errors in the escrow accounting as you stated above, they will start by sending a demand to Chase to correct the matter and to suggest a reasonable reimbursement plan to reimburse them for the taxes they paid and if Chase refuses, then they would have to file suit against Chase to prevent them from foreclosing, which is likely what Chase is contemplating by refusing your payments and seek damages from them for improperly paying the taxes and the escrow errors.

Please do not forget to leave positive feedback by clicking on the 5 stars at the top of your page, as the experts are not employees of the site and get no credit for spending time with customers unless they leave positive feedback. Thank you.

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