Cancel escrow account

Guest

I have a mortgage with credit union? My every monthly payment goes into an escrow account. Is it possible to cancel the escrow account any time without paying any penalty.

sara · Posted: Thu Oct 26, 2006 8:27 pm Post subject: RE: cancel escrow account

Hi Martin,

As far as I know, most lenders do not allow borrowers to cancel the escrow account on the existing loan. The only way to get rid of the escrow account is to refinance the loan with the existing lender or write a new loan with a different lender.

Thanks,

Sara.

Guest

Once an escrow account is in place, it becomes quite difficult to convince the lender to cancel it. If your loan is sold to a third party, then you will have to agree with what the new mortgage company or lender has to say.

Guest

Can the seller cancel escrow on a short sale and open with another client

Guest

If we are in escrow and have bank approval and the seller now has put back on the market because it has been 45 days and does not want to give extension can the seller do that it is a short sale.

enriko · Joined: 05 Mar 2008 Posts: 68 0.15 Dollars($)

No i am pretty sure that you cant do that, or if you can it is really difficult

Guest

made offer....opened escrow gave money.....decided to cancel purchase....monies not returned over 2 weeks...ADVISE PLEASE

jerry · Posted: Wed Nov 12, 2008 2:23 am Post subject:

Hi ilan,

As far as I know, the lender can place a penalty for cancellation of escrow. May be the lender has taken the money from your escrow deposits as a penalty. However, to be on the safer side, I would suggest you to talk to the lender once and ask the reason for not paying you the money.

Thanks,

Jerry

Guest

Chase purchase my mortgage from another company they are saying that the escrow account is short but the pervious year they sent me back a check for almost 2,000 and now they want to raise my payment a 150 plus an additional 159.00 for a shortage over 12 months can they do this

savior70 · Posted: Sat Mar 28, 2009 3:34 am Post subject:

Hi

They can do this. If the escrow account is too short to cover the property tax and insurance expenses, they can raise the payment. An escrow account is after all for your benefit so even if you face some financial problem, you would still be current on your property tax and insurance payments. However, you should definitely check with Chase what caused this raise in your escrow payments.

gmakerley · Posted: Sat Mar 28, 2009 4:58 am Post subject:

it's pretty evident that the previous year's escrow analysis was erroneous, and that chase now has to compensate for that error. perhaps your taxes have increased dramatically - that's another possibility.

in any event, savior70 is correct in stating that chase is doing what it should do. in order to pay your tax (and insurance, i gather) when due, there needs to be sufficient funds in the escrow account. in order to make up for the shortage, they need to increase your payment accordingly.

Guest

If you have a Conventional Loan and you do not have PMI (Private Mortgage Insurance), you have the option to close your escrow account and make your own tax and insurance payments. If you have a VA or FHA loan, the maintenance of an escrow account was a condition for the funding of your government-insured loan. In this case, the escrow account cannot be waived or altered.

Guest

I understand that an escrow account is for your benefit, however can a mortgage co. place you in a escrow account without your consent and if so what are some of the circumstances? By the way i have a conventional loan.

smithsussane · Posted: Thu Apr 16, 2009 9:20 pm Post subject:

Hi reggie!

Welcome to Forums!

The lender will have to inform you about the escrow account whether it's a conventional loan or a FHA loan.

Sussane

gmakerley · Posted: Fri Apr 17, 2009 6:00 am Post subject:

reggie with some programs there is no choice; it would be a requirement. with some other programs, a lender can waive the escrow requirement, but it typically costs you .25% as an upfront cost.

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