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Message
Escrow shortage
Posted on 3/24/17 at 9:35 am
Posted on 3/24/17 at 9:35 am
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.
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.
11
Posted on 3/24/17 at 9:39 am to PhiTiger1764
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.
Posted on 3/24/17 at 9:43 am to Sacrifice_blunts
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.
Posted on 3/24/17 at 9:50 am to LNCHBOX
You're right
Posted on 3/24/17 at 9:50 am to LNCHBOX
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.
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.
Posted on 3/24/17 at 10:04 am to baldona
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.
Posted on 3/24/17 at 10:08 am to PhiTiger1764
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.
Posted on 3/24/17 at 10:26 am to PhiTiger1764
Call them and ask for an escrow re-analysis
Posted on 3/24/17 at 10:39 am to PhiTiger1764
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.
Posted on 3/24/17 at 10:40 am to Jp1LSU
I meant mortgage company not real estate company.
Posted on 3/24/17 at 10:43 am to PhiTiger1764
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.
Posted on 3/24/17 at 10:45 am to PhiTiger1764
why did your insurance payment move from may up to december? this is what is causing the issue.
Posted on 3/24/17 at 12:53 pm to PhiTiger1764
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.
They make mistakes, call them and talk to a manager if you have to . . . that's what I had to do two years ago.
Posted on 3/24/17 at 1:37 pm to Sacrifice_blunts
quote:i had senaca for 2 years, and they were the worst ever.
There's your problem. Literally the worst mortgage servicer 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.
Posted on 3/24/17 at 8:25 pm to West Monroe
I got the refund and deposited it to my escrow
Switched companies. Got a refund from old company and deposited it to 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 3/24/17 at 8:32 pm
Posted on 3/24/17 at 8:36 pm to Wortivi22
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.
Posted on 3/24/17 at 11:41 pm to PhiTiger1764
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.
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.
Posted on 3/24/17 at 11:47 pm to PhiTiger1764
Just cut a $6k check for my shortage and my payment is still going up $400 per month. Texas...
Posted on 3/25/17 at 12:44 am to Sacrifice_blunts
quote: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
There's your problem. Literally the worst mortgage servicer ever...
Posted on 3/25/17 at 1:02 am to ForeverLSU02
Exact thing just happened with my mortgage. I'll be on the phone with them Monday morning.
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