can my lender change my mortgage payment

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Post Posted: Wed Mar 05, 2008 12:55 pm    Post subject: can my lender change my mortgage payment
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Background. I purchased a home using the builders in-house mortgage co (another thread another discussion), The loan was bundled and sold to a large lending institution. Before the loan was sold, the brand new house started to have issues. Once the new lender was in receipt of the loan, I informed them and their quest to get the builders mortgage company to buy it back failed. My house continued to crumble, and subsequently in June 07 I lost my homeowners. I cannot be insured by anyone, including the state fair plan because the house is structurally defective. (I have been trying since July 06 to get the builder to buy the house back - still working this).

I do not have an escrow the lender for taxes and insurance. I pay them on my own. So the amount I pay each month is the mortgage payment that I signed and agreed upon.

The lender, and so they say, can place forced insurance on my house. So they did. The amount was 6 times the amount I was paying when I did have insurance. Since I have been fighting the builder, have obtained an attorney, I did not remit payment for their ridiculous insurance, which BTW only covers the amount they paid for the loan (my loan balance plus whatever they had to pay in addition to) This amount only covers the structure and nothing else.

Issue at hand I pay my mortgage on line the first of each month. When I went to pay my mortgage the other day, I noticed that my payment on my loan was increased almost $300. I was not notified that my mortgage payment would go up nor did they did not notify me verbally or in writing that they established an escrow for the forced insurance.

I am trying to get the mortgage company to submit to me in writing an explanation why this occured. They will only send me via mail my payment history. that isn't going to solve my problem. regardless I realize they can place forced insurance, but can they put it in an escrow and raise my mortgage payment without notifying me? -

If you all could give me any bit of advice, be it personal or legal I would appreciate it.

I can't believe they can raise my payment without telling me about it. but mortgage companies (not all) have been doing a lot of stuff they shouldn't have been doing these past few years

TIA
Icon Mini Profile larry





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Post Posted: Wed Mar 05, 2008 1:41 pm    Post subject:
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Hi,

Welcome to this forum.

What you are saying seems to me quit justified. The mortgage company should at least inform you before adding an escrow. The lending institute wants that the borrower should have an escrow account but it is quit ridiculous that irritating if the lender adds an escrow without even informing the borrower.

Best of luck,
Larry
Matt

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Post Posted: Thu Mar 06, 2008 8:19 pm    Post subject:
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Typically most lenders send notice when placing either an escrow account or lender placed insurance on a property...60 days notice in most cases, many borrowers however don't even bother to look at the notice thinking it's a collection letter or they are trying to sell something...

However if there is insurance lacking on the property or taxes are not paid then I don't think they are liable by law to notify you...obviously laws vary by state...as a consumer (ie homeowner) the responsibility lies with you to pay taxes and keep the property insured per the standards of the note....

I know many payment notices etc are not required by law, they are simply common courtesy by the mortgage company..one of the most common misconceptions is the mortgage company is required to send out a monthly statement and this is not accurate..as the borrower the responsibility lies with you and only you to maintain your payments....a statement is not required..so I wonder if this falls under that heading?

To be sure you'd probably need to check w/an attorney for a real answer
Icon Mini Profile jameshogg
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Post Posted: Thu Mar 06, 2008 11:40 pm    Post subject: RE: can lenders change payment?
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Hi Matt,

I can understand what you're trying to say. It is indeed the responsiblity of the homeowner to keep making payments. If the borrower hasn't had an escrow since the time the loan started off, he must have been notified it to the lender. So now if the lender raises the escrow, I feel it should be notified.

I think TIA should check out with the consumer protection laws in his/her state. By the way, TIA where do you stay?
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