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Started By
Message
Check from Escrow and Lowered Mortgage Payment (funny situation)
Posted on 9/2/16 at 1:05 pm
Posted on 9/2/16 at 1:05 pm
So just bought a house in July and mortgage payments and such have been smooth.
Yesterday I received a letter in the mail from the mortgage company with a check from escrow for 2K and a statement saying my mortgage payment was being lowered by $230/month.
At first I thought this was a fraud letter and decided to call the bank.
Bank states everything looks fine, but that I had payed too much into escrow because I didn't have to pay property taxes as I was a disable veteran with an exemption...
Except...
That was the guy I bought the house from...now I'm sitting with a 2K check waiting for the bank to figure out what they fricked up on
Anybody ever been through this before?
Yesterday I received a letter in the mail from the mortgage company with a check from escrow for 2K and a statement saying my mortgage payment was being lowered by $230/month.
At first I thought this was a fraud letter and decided to call the bank.
Bank states everything looks fine, but that I had payed too much into escrow because I didn't have to pay property taxes as I was a disable veteran with an exemption...
Except...
That was the guy I bought the house from...now I'm sitting with a 2K check waiting for the bank to figure out what they fricked up on
Anybody ever been through this before?
4
Posted on 9/2/16 at 1:16 pm to gaetti15
I've never been through it, but it's not hard to figure out. Your loan officer set the payments and amounts needed to start escrow based on the fact that the exemption would be removed. Now the mortgage company re-checks the records and doesn't realize that the exemption will come off.
Did your mortgage get sold right after closing?
I would not cash the check. Send it back to them. Otherwise, they are going to nail you at the escrow analysis next year.
Did your mortgage get sold right after closing?
I would not cash the check. Send it back to them. Otherwise, they are going to nail you at the escrow analysis next year.
Posted on 9/2/16 at 1:20 pm to LSUFanHouston
quote:
Did your mortgage get sold right after closing?
I'm not sure
quote:
I would not cash the check. Send it back to them. Otherwise, they are going to nail you at the escrow analysis next year.
yeah that's what I was thinking after I originally called them.
I feel like they should lower my payments for being such a good samaritan jk
Posted on 9/2/16 at 2:03 pm to gaetti15
(no message)
This post was edited on 9/2/16 at 4:11 pm
Posted on 9/2/16 at 2:11 pm to gaetti15
I got around $800 back after the first year in my mortgage. As I understand it they estimate taxes that will be due at the end of the year and factor it into your payment, and sometimes they are off. I'm guessing that local tax rates, appraised value, etc all factor into the reason why the amount you pay into escrow isn't absolutely certain from year to year. But I defer to the professional mortgage loan office or tax attorney to correct me.
Posted on 9/2/16 at 2:15 pm to Lou
I think new home owners tend to get 500-1000.00 back at the end of the first year.
Posted on 9/2/16 at 3:01 pm to gaetti15
Do you have a variable rate ? I hope not.
Posted on 9/2/16 at 3:11 pm to 13SaintTiger
No, it doesn't go to the previous owner. OP, you need to stick that money back, because once it is switched over into your name on the next year's tax rolls, you will have a big deficit in your escrow account. You will have to cover the deficit at the following analysis, or your escrow payment is going to jump way up. You should contact the mortgage services to see if they can deposit it back into your escrow. You will end up paying for it, either now or later.
Posted on 9/2/16 at 3:21 pm to LPTReb
(no message)
This post was edited on 9/2/16 at 4:11 pm
Posted on 9/2/16 at 4:01 pm to The Torch
quote:
Do you have a variable rate ? I hope not.
nope
Posted on 9/2/16 at 4:02 pm to LPTReb
quote:
OP, you need to stick that money back, because once it is switched over into your name on the next year's tax rolls, you will have a big deficit in your escrow account. You will have to cover the deficit at the following analysis, or your escrow payment is going to jump way up. You should contact the mortgage services to see if they can deposit it back into your escrow. You will end up paying for it, either now or later.
that's the plan. I've already called and told them they screwed up.
They are looking into it. Not going to cash the check
Posted on 9/2/16 at 4:04 pm to 13SaintTiger
quote:
The bank will issue the previous owner, the actual disabled vet, a check. I'm not saying the op should give the money to him but the bank will after they see the issue.
That money came from the purchaser of the house. Why would the money go to the former owner of the house?
This wasn't a refund from the government to the bank.
Posted on 9/2/16 at 4:05 pm to Coach Guidry
quote:
I think new home owners tend to get 500-1000.00 back at the end of the first year.
I wish. We just had our analysis a couple of months ago and we had a shortage of like 1K. Apparently when they did our escrow, they based it on the property taxes of the previous owner. Apparently, it was on the tax rolls at a value significantly less than what we bought it for.
Posted on 9/2/16 at 4:15 pm to LSUFanHouston
quote:
This wasn't a refund from the government to the bank.
I know that. While I'm wrong, I'm not wrong for the reasons you think I am. Sometimes it takes awhile for escrow to reflect actual property taxes owed, especially for a veteran who retired recently at 100%. When it does reflect, the vet will get a escrow refund, it's happened plenty to my peers. In many states, disabled vets don't owe property taxes. I'm wrong because op's bank has nothing to do with previous owners bank so I'm not sure why they thought op was the vet.
This post was edited on 9/2/16 at 4:16 pm
Posted on 9/2/16 at 8:14 pm to 13SaintTiger
quote:
In many states, disabled vets don't owe property taxes.
That is how it is in Mat-Su Borough in which I live. Guy who previously own the house did not pay property taxes
quote:
I'm wrong because op's bank has nothing to do with previous owners bank so I'm not sure why they thought op was the vet
This is what is confusing as hell.
Posted on 9/2/16 at 10:25 pm to 13SaintTiger
quote:
Sometimes it takes awhile for escrow to reflect actual property taxes owed, especially for a veteran who retired recently at 100%. When it does reflect, the vet will get a escrow refund, it's happened plenty to my peers. In many states, disabled vets don't owe property taxes. I'm wrong because op's bank has nothing to do with previous owners bank so I'm not sure why they thought op was the vet.
No I get that... it's the fact that the OP's situation involves the OP and HIS lender, not the vet and his lender.
Posted on 9/3/16 at 12:37 am to LSUFanHouston
quote:
Apparently, it was on the tax rolls at a value significantly less than what we bought it for.
In NO, no kidding. The houses that don't change hands get upped some arbitrary amount over time. When we bought our house there at 325k, it was assessed at like 215k for the previous owner. And so were any other houses that hadn't changed hands. So half our block were transferred in the last 5 years and were paying substantially more than the older neighbors.
How you had that problem is beyond me though, because the escrow and city immediately upped to our purchase price for taxes.
This post was edited on 9/3/16 at 12:39 am
Posted on 9/4/16 at 8:53 pm to LSUFanHouston
Loan officers don't set us escrow payments. Taxes come from title company handling the closing.
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