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Message
Mortgage escrow overages, and banks withholding them...
Posted on 4/16/18 at 1:03 pm
Posted on 4/16/18 at 1:03 pm
Long story short, I got the flood zone on my property reclassified to X from AE, so we no longer have to pay for flood insurance as a part of our escrow.
As a result, we had a new escrow analysis done and predictably we had an overage (past $50) for the months of flood insurance that went into the escrow that is now no longer needed. This was middle of March. A check was supposed to go out immediately afterward.
Its now been 4 weeks, and I have gotten nothing from them. When I called today the kind gentleman said a stop order could be placed on the original check and a new one would be issued in 6 business days.
I responded that federal law (RESPA, 12 CFR 1024.17 (f)(2)) compels banks to send out any overages within 30 days of a new analysis, and asked if he wanted to reconsider the time frame. A manager quickly came on afterward and asked if an overnight check would suffice.
Given my relationship with this bank, I have zero faith this will be resolved soon.
Anybody else dealt with this situation before?
As a result, we had a new escrow analysis done and predictably we had an overage (past $50) for the months of flood insurance that went into the escrow that is now no longer needed. This was middle of March. A check was supposed to go out immediately afterward.
Its now been 4 weeks, and I have gotten nothing from them. When I called today the kind gentleman said a stop order could be placed on the original check and a new one would be issued in 6 business days.
I responded that federal law (RESPA, 12 CFR 1024.17 (f)(2)) compels banks to send out any overages within 30 days of a new analysis, and asked if he wanted to reconsider the time frame. A manager quickly came on afterward and asked if an overnight check would suffice.
Given my relationship with this bank, I have zero faith this will be resolved soon.
Anybody else dealt with this situation before?
2
Posted on 4/16/18 at 1:59 pm to NYNolaguy1
(no message)
This post was edited on 12/21/21 at 11:27 am
Posted on 4/16/18 at 1:59 pm to NYNolaguy1
do you have to have an escrow account?
Posted on 4/16/18 at 2:03 pm to notsince98
quote:
do you have to have an escrow account?
Yes.
Posted on 4/16/18 at 2:05 pm to XanderCrews
quote:
Tough guy
Try withholding money for 30 days from a bank for a property you own, and let us know what happens.
Posted on 4/16/18 at 2:52 pm to NYNolaguy1
quote:
Yes.
What reasoning did your mortgage lender have for this? I could see it when flood insurance was required but if you have good credit and have been on time with your payments, seems inappropriate.
Posted on 4/16/18 at 3:08 pm to notsince98
quote:
What reasoning did your mortgage lender have for this? I could see it when flood insurance was required but if you have good credit and have been on time with your payments, seems inappropriate.
My thought process too. They claimed on multiple occasions it was sent out, but no luck- they acknowledged they owed us this money. We are in good standing with the loan.
I offered to give them a routing number and account number they could just deposit the money into rather than waiting for a check, but they then claimed that they would need a signed wet ink notarized copy of a document authorizing them to do so, which would at very minimum take a week plus for them to get it, process it, etc.
I like to think its just incompetence. Wells Fargo sucks.
This post was edited on 4/16/18 at 3:09 pm
Posted on 4/16/18 at 3:29 pm to NYNolaguy1
Dude you have been basically play-by-playing this process out on the Money Talk for at least 6-8 months. The Flood Insurance you're owed on this must be like liquid gold or something.
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