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My wife and I are in a difficult situation due to an

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Hi, my wife and...

Hi, my wife and I are in a difficult situation due to an oversight with our escrow account. Can you help us understand if we have any legal recourse?

Lawyer's Assistant: Where is the property located?

Johnson County, KS

Lawyer's Assistant: Has any paperwork been filed?

What kind of paperwork?

Lawyer's Assistant: Anything else you want the lawyer to know before I connect you?

Nothing besides the details...

Submitted: 4 months ago.Category: Legal
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11/29/2017
Lawyer: Attorney2, Attorney replied 4 months ago
Attorney2
Attorney2, Attorney
Category: Legal
Satisfied Customers: 8,314
Experience: 30 Years In General Practice,
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Welcome to JA and thank you for your question. I will be the Attorney that will be assisting you.

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Lawyer: Attorney2, Attorney replied 4 months ago

What occurred after you reported the oversight?

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Customer reply replied 4 months ago
My wife and I built a new house and closed on September, 2015. We were just notified that no taxes were being collected in escrow and have received a tax bill for $10,600 (2 years later). They have adjusted our monthly payment increasing it by 60%. We won't be able to afford this payment. Do we have any options legally?
Lawyer: Attorney2, Attorney replied 4 months ago

Did they increase your monthly payment to include a tax escrow? You can pay your own taxes. I would be curious to see your closing documents to see if a tax escrow should have been set up.

You can certainly file complaints with the appropriate consumer protection agencies. I can provide the links. Give me one moment to provide the law on tax escrows.

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Lawyer: Attorney2, Attorney replied 4 months ago
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Customer reply replied 4 months ago
they increased my monthly payment by 60% to make up for the difference in the missed taxes. I'm unable to work directly with the county to pay my taxes since it was set up in escrow. The bank has already paid the county. Is the bank supposed to update/adjust my monthly payment annually due to any changes in insurance and/or taxes?
Lawyer: Attorney2, Attorney replied 4 months ago

The lender has a some leeway in these matters within reason. 2 years is a ridiculous amount of time for the lender to figure this out. There was a chance your taxes could have been sold and the penalties and interest is on the lender. This is an overview and link for the laws. I will also set out the complaints that you will file. for their error.

"1. If an escrow account analysis discloses a shortage of less than one month's escrow account payment, then the servicer has three possible courses of action:

  1. The servicer may allow a shortage to exist and do nothing to change it;

  2. The servicer may require the borrower to repay the shortage amount within 30 days; or

  3. The servicer may require the borrower to repay the shortage amount in equal monthly payments over at least a 12-month period.

    1. If an escrow account analysis discloses a shortage that is greater than or equal to one month's escrow account payment, then the servicer has two possible courses of action:

      1. The servicer may allow a shortage to exist and do nothing to change it; or

      2. The servicer may require the borrower to repay the shortage in equal monthly payments over at least a 12-month period.

    2. DEFICIENCY.If the escrow account analysis confirms a deficiency, then the servicer may require the borrower to pay additional monthly deposits to the account to eliminate the deficiency.

      1. If the deficiency is less than one month's escrow account payment, then the servicer:

        1. May allow the deficiency to exist and do nothing to change it;

        2. May require the borrower to repay the deficiency within 30 days; or

        3. May require the borrower to repay the deficiency in 2 or more equal monthly payments.

      2. If the deficiency is greater than or equal to 1 month's escrow payment, the servicer may allow the deficiency to exist and do nothing to change it or may require the borrower to repay the deficiency in two or more equal monthly payments.

      3. These provisions regarding deficiencies apply if the borrower is current at the time of the escrow account analysis. A borrower is current if the servicer receives the borrower's payments within 30 days of the payment due date. If the servicer does not receive the borrower's payment within 30 days of the payment due date, then the servicer may recover the deficiency pursuant to the terms of the federally related mortgage loan documents.

    3. NOTICE OF SHORTAGE OR DEFICIENCY IN ESCROW ACCOUNT.The servicer shall notify the borrower at least once during the escrow account computation year if there is a shortage or deficiency in the escrow account. The notice may be part of the annual escrow account statement or it may be a separate document." https://www.consumerfinance.gov/eregulations/1024-17/2015-18239#1024-17-f-4-iii

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Lawyer: Attorney2, Attorney replied 4 months ago

"Initial escrow account statement —

  1. SUBMISSION AT SETTLEMENT, OR WITHIN 45 CALENDAR DAYS OF SETTLEMENT.As noted in § 1024.17(c)(2), the servicer shall conduct an escrow account analysis before establishing an escrow account to determine the amount the borrower shall deposit into the escrow account, subject to the limitations of § 1024.17(c)(1)(i). After conducting the escrow account analysis for each escrow account, the servicer shall submit an initial escrow account statement to the borrower at settlement or within 45 calendar days of settlement for escrow accounts that are established as a condition of the loan.

    1. The initial escrow account statement shall include the amount of the borrower's monthly mortgage payment and the portion of the monthly payment going into the escrow account and shall itemize the estimated taxes, insurance premiums, and other charges that the servicer reasonably anticipates to be paid from the escrow account during the escrow account computation year and the anticipated disbursement dates of those charges. The initial escrow account statement shall indicate the amount that the servicer selects as a cushion. The statement shall include a trial running balance for the account.

    2. Pursuant to § 1024.17(h)(2), the servicer may incorporate the initial escrow account statement into the HUD-1 or HUD-1A settlement statement. If the servicer does not incorporate the initial escrow account statement into the HUD-1 or HUD-1A settlement statement, then the servicer shall submit the initial escrow account statement to the borrower as a separate document.

  2. TIME OF SUBMISSION OF INITIAL ESCROW ACCOUNT STATEMENT FOR AN ESCROW ACCOUNT ESTABLISHED AFTER SETTLEMENT.For escrow accounts established after settlement (and which are not a condition of the loan), a servicershall submit an initial escrow account statement to a borrower within 45 calendar days of the date of establishment of the escrow account.

  3. Format for initial escrow account statement.

    1. The format and a completed example for an initial escrow account statement are set out in Public Guidance Documents entitled “Initial Escrow Account Disclosure Statement—Format” and “Initial Escrow Account Disclosure Statement—Example”, available in accordance with § 1024.3.

    2. INCORPORATION OF INITIAL ESCROW ACCOUNT STATEMENT INTO HUD-1 OR HUD-1A SETTLEMENT STATEMENT.Pursuant to § 1024.9(a)(11), a servicer may add the initial escrow account statement to the HUD-1 or HUD-1A settlement statement. The servicer may include the initial escrow account statement in the basic text or may attach the initial escrow account statement as an additional page to the HUD-1 or HUD-1A settlement statement.

    3. IDENTIFICATION OF PAYEES.The initial escrow account statement need not identify a specific payee by name if it provides sufficient information to identify the use of the funds. For example, appropriate entries include: county taxes, hazard insurance, condominium dues, etc. If a particular payee, such as a taxing body, receives more than one payment during the escrow account computation year, the statement shall indicate each payment and disbursement date. If there are several taxing authorities or insurers, the statement shall identify each taxing body or insurer (e.g., “City Taxes”, “School Taxes”, “Hazard Insurance”, or “Flood Insurance,” etc.).

  4. Annual escrow account statements.For each escrow account, a servicer shall submit an annual escrow account statement to the borrower within 30 days of the completion of the escrow account computation year. The servicer shall also submit to the borrower the previous year's projection or initial escrow account statement. The servicer shall conduct an escrow account analysis before submitting an annual escrow account statement to the borrower.

    1. CONTENTS OF ANNUAL ESCROW ACCOUNT STATEMENT.The annual escrow account statement shall provide an account history, reflecting the activity in the escrow account during the escrow account computation year, and a projection of the activity in the account for the next year. In preparing the statement, the servicer may assume scheduled payments and disbursements will be made for the final 2 months of the escrow account computation year. The annual escrow account statement must include, at a minimum, the following (the items in paragraphs (i)(1)(i)through (i)(1)(iv) must be clearly itemized):

      1. The amount of the borrower's current monthly mortgage payment and the portion of the monthly payment going into the escrow account;

      2. The amount of the past year's monthly mortgage payment and the portion of the monthly payment that went into the escrow account;

      3. The total amount paid into the escrow account during the past computation year;

      4. The total amount paid out of the escrow account during the same period for taxes, insurance premiums, and other charges (as separately identified);

      5. The balance in the escrow account at the end of the period;

      6. An explanation of how any surplus is being handled by the servicer;

      7. An explanation of how any shortage or deficiency is to be paid by the borrower; and

      8. If applicable, the reason(s) why the estimated low monthly balance was not reached, as indicated by noting differences between the most recent account history and last year's projection. Public Guidance Documents entitled “Annual Escrow Account Disclosure Statement—Format” and “Annual Escrow Account Disclosure Statement—Example” set forth an acceptable format and methodology for conveying this information.

    2. NO ANNUAL STATEMENTS IN THE CASE OF DEFAULT, FORECLOSURE, OR BANKRUPTCY.This paragraph (i)(2) contains an exemption from the provisions of § 1024.17(i)(1). If at the time the servicer conducts the escrow account analysis the borrower is more than 30 days overdue, then the servicer is exempt from the requirements of submitting an annual escrow account statement to the borrower under § 1024.17(i). This exemption also applies in situations where the servicer has brought an action for foreclosure under the underlying federally related mortgage loan, or where the borrower is in bankruptcy proceedings. If the servicer does not issue an annual statement pursuant to this exemption and the loan subsequently is reinstated or otherwise becomes current, the servicer shall provide a history of the account since the last annual statement (which may be longer than 1 year) within 90 days of the date the account became current.

DELIVERY WITH OTHER MATERIAL.The servicer may deliver the annual escrow account statement to the borrower with other statements or materials, including the Substitute 1098, which is provided for Federal income tax purposes..." https://www.consumerfinance.gov/eregulations/1024-17/2015-18239#1024-17-i-2

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Lawyer: Attorney2, Attorney replied 4 months ago

I would contact the CFPB (Consumer Financial Protection Bureau) today at https://www.consumerfinance.gov/

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Lawyer: Attorney2, Attorney replied 4 months ago

Kansas Attorney General at http://ag.ks.gov/in-your-corner-kansas/

I have more for you and they need to work with you.

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Lawyer: Attorney2, Attorney replied 4 months ago
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Lawyer: Attorney2, Attorney replied 4 months ago
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Lawyer: Attorney2, Attorney replied 4 months ago

Real Estate Attorneys in Johnson County that provide FREE consultations http://lawyers.findlaw.com/lawyer/firm/real-estate-law/johnson-county/kansas

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Lawyer: Attorney2, Attorney replied 4 months ago

Please do not hesitate to ask me any additional questions that you may have with regard to this matter. It would be my pleasure to continue to assist you.

If you would be kind enough to rate my service positively so I will receive credit for my work from the site I would appreciate it. A positive rating will not impact your ability to obtain a refund.

You may not be familiar with how the site works. The Attorneys to not receive credit from the site for their time or with customers unless the customer provides a positive rating. We answer your questions in good faith, hoping for a good faith response regardless of whether the law is in your favor or not. If you were unhappy with my service please let me know that you would prefer to work with another Attorney and I will opt out.

Can you see the rating scale on your end, 5 stars?

Thank you for your consideration.

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Lawyer: Attorney2, Attorney replied 4 months ago

Do you have additional questions for me?

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Lawyer: Attorney2, Attorney replied 4 months ago

I am sorry I am not seeing a response from you? Are there any additional questions that I can answer for you?

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