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PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
10578 posts

Escrow shortage
Received an email from Wells Fargo informing me I have a projected $485 escrow shortage for the coming 12 months. I recently changed insurance companies and my premium is about $100/yr cheaper. And property taxes are the same (Baton Rouge.)

So needless to say, when they said my 2 options are to write a check for $485 now or have my payments increase for 12 months, this pissed me off.

I'm trying to figure out what is going on, and it looks like the problem is that property taxes are paid in December each year whereas my insurance was paid in May. My new insurance is now paid in December as well. So syncing these 2 payments leaves my escrow balance at an unacceptable level apparently. Does this make sense? Has anyone else dealt with this? I sure as hell didn't expect saving $100 would cost me $485. I guess I'm just venting here.. not sure there's anything I can do.


Sacrifice_blunts
LSU Fan
Member since Jun 2013
220 posts

re: Escrow shortage
quote:

Wells Fargo


There's your problem. Literally the worst mortgage servicer ever...

Anyways, ask them why it's going up? Maybe they didn't collect enough from when your insurance and taxes were more expensive? Make sure they have your new policy on file and didn't force place something on you. I mean there's not a lot of things it could be as far as escrow goes.


LNCHBOX
LSU Fan
70001
Member since Jun 2009
41775 posts

re: Escrow shortage
quote:

Anyways, ask them why it's going up? Maybe they didn't collect enough from when your insurance and taxes were more expensive?
quote:

the problem is that property taxes are paid in December each year whereas my insurance was paid in May. My new insurance is now paid in December as well. So syncing these 2 payments leaves my escrow balance at an unacceptable level apparently.


He said what the issue is.


Sacrifice_blunts
LSU Fan
Member since Jun 2013
220 posts

re: Escrow shortage
You're right


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baldona
Auburn Fan
Florida
Member since Feb 2016
4007 posts

re: Escrow shortage
Its not going to cost you anymore money, if anything they will refund you or reduce your future payments. They are just saying that your premium payment is due X date and we need Y payments a month to get there.

If you reduced premiums, are they currently charging you a reduced amount for your mortgage payment? Because its a large bank, its possible it will take them many months to get your reduction registered in their system.


PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
10578 posts

re: Escrow shortage
quote:

reduce your future payments. They are just saying that your premium payment is due X date and we need Y payments a month to get there.

This is what's happening. My future mortgage payments will be cheaper than they were before, but they want $485 now (or paid over 12 months) so that after they pay my taxes and insurance in December, the balance will still have several hundred dollars and not go down to near zero.

Technically it's not costing me $485, I'm not losing it. But they are forcing me to put it in escrow because they don't like the balance getting close to zero. It's still money I have to take out of my checking account and put into WF escrow where I can't use for anything else. Just caught me off guard.


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oldcharlie8
LA-Lafayette Fan
Baton Rouge
Member since Dec 2012
6200 posts

re: Escrow shortage
the did this to me about 5 years ago. I now do my own escrow as I had enough equity for them to release me.


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Tiger Prawn
LSU Fan
Member since Dec 2016
4334 posts
 Online 

re: Escrow shortage
Call them and ask for an escrow re-analysis


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Jp1LSU
LSU Fan
Key West
Member since Oct 2005
730 posts

re: Escrow shortage
I have 2 properties that have an escrow and this happens all the time. Very recently my escrow was overfunded on one of them and the real estate company sent me a check.


Jp1LSU
LSU Fan
Key West
Member since Oct 2005
730 posts

re: Escrow shortage
I meant mortgage company not real estate company.


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West Monroe
west Monroe, la
Member since Jan 2005
936 posts

re: Escrow shortage
Did they pay your old and new insurance companies?? If you got a refund from your old company that should have gone back into your escrow account. If they didn't pay both, it doesn't make any sense that you would have a shortage.


LSUFanHouston
LSU Fan
NOLA
Member since Jul 2009
9320 posts
 Online 

re: Escrow shortage
why did your insurance payment move from may up to december? this is what is causing the issue.


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Wortivi22
Houston Astros Fan
Land of Mini Vans
Member since Dec 2007
772 posts

re: Escrow shortage
Look at the escrow statement they sent to you (or look for it online). It should show what they are estimating the future payments to be. Make sure they are using the updated insurance amount and not just taking the old amount and assuming it is the same for the next year. Make sure all of the other future payments are correct as well. This should tell you why there is a difference. The timing should not be an issue.
They make mistakes, call them and talk to a manager if you have to . . . that's what I had to do two years ago.


Hawkeye95
LSU Fan
Member since Dec 2013
20293 posts

re: Escrow shortage
quote:

There's your problem. Literally the worst mortgage servicer ever...

i had senaca for 2 years, and they were the worst ever.

I had a shortage and they didn't tell me about it for like 6 months until they tried to charge a fee to me. Nothing on any statement, nothing.



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PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
10578 posts

re: Escrow shortage
I got the refund and deposited it to my escrow
quote:

[quote]why did your insurance payment move from may up to december? this is what is causing the issue.

Switched companies. Got a refund from old company and deposited it to escrow
This post was edited on 3/24 at 8:32 pm


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PhiTiger1764
LSU Fan
Lurker since Aug 2003
Member since Oct 2009
10578 posts

re: Escrow shortage
I'm going to take another look and give them a call and just see if they can explain it.. and why it wasn't an issue before I switched companies. Thanks for all the responses.


Twenty 49
LSU Fan
Shreveport
Member since Jun 2014
7274 posts
 Online 

re: Escrow shortage
I had a mortgage company screw up and not pay my HO insurance one year. I ripped their arse and demanded they drop the escrow requirement and let me handle it since I was more responsible than their dumb asses.

To my shock, they agreed. It may be worth asking, if you can handle saving the money on your own so you can pay the HO premium and taxes all at once when due.


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HurricaneDunc
Bowling Green Fan
Houston
Member since Nov 2008
10226 posts

re: Escrow shortage
Just cut a $6k check for my shortage and my payment is still going up $400 per month. Texas...


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ForeverLSU02
Penn Fan
Albany
Member since Jun 2007
46852 posts

re: Escrow shortage
quote:

There's your problem. Literally the worst mortgage servicer ever...
I've had them for the last 7 years and haven't had any issues at all. Been really happy with them and their customer service has been excellent


Bill Parker?
Member since Jan 2013
1923 posts

re: Escrow shortage
Exact thing just happened with my mortgage. I'll be on the phone with them Monday morning.


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