Posted on: 08th May, 2012 08:24 pm
We received a letter from the bank that we have an escrow shortage of about $3000 and therefore our monthly mortgage will increase by $450. ($200 to pay the shortage, the rest to cover future expenses). First we didn’t understand, when we called the bank we were told that it possibly happened either because the property tax (PT) increased or our home insurance increased. However, in our case none of this is true, in fact the PT decreased since we bought the house (due to lower sale price).
We bought the house in March 2011 and paid for the first half year a prorated amount based on the previous owners tax bill. After talking to the bank we realized that although we paid the right amount for the first period, when they included it in the monthly payment they took an average (1.25% of sales price) instead of the actual amount (we have additional tax for the district). The bank first insisted that our PT increased and everything was fine with the loan, even stating the amount they supposedly took from the tax bill for 2010. However when we pointed out that that amount was incorrect providing the copy of the tax bill for 2010 and 2011 (showing the actual decrease about $150) the lender said, he did not have the document available at closing so he just calculated an average PT for California. IF he had no information about the tax amount, how could he add the right number for the prorated tax?
We feel they take us for id***s. I know that it is also our responsibility to check that the paper we signed was correct, but as a first time home buyer were we supposed to suspect that even though on the first page of our mortgage document the tax amount is correct on page 3 they would add an incorrect value? We understand that the tax is more and our mortgage will increase in the future, however, we feel the bank should take responsibility for their error and at least take care of the shortage. Any opinion?
We bought the house in March 2011 and paid for the first half year a prorated amount based on the previous owners tax bill. After talking to the bank we realized that although we paid the right amount for the first period, when they included it in the monthly payment they took an average (1.25% of sales price) instead of the actual amount (we have additional tax for the district). The bank first insisted that our PT increased and everything was fine with the loan, even stating the amount they supposedly took from the tax bill for 2010. However when we pointed out that that amount was incorrect providing the copy of the tax bill for 2010 and 2011 (showing the actual decrease about $150) the lender said, he did not have the document available at closing so he just calculated an average PT for California. IF he had no information about the tax amount, how could he add the right number for the prorated tax?
We feel they take us for id***s. I know that it is also our responsibility to check that the paper we signed was correct, but as a first time home buyer were we supposed to suspect that even though on the first page of our mortgage document the tax amount is correct on page 3 they would add an incorrect value? We understand that the tax is more and our mortgage will increase in the future, however, we feel the bank should take responsibility for their error and at least take care of the shortage. Any opinion?
Hi guest,
The bank should take the responsibility for their error but I don't think they do so. If you feel that you have been cheated or scammed, you can contact an attorney and take his opinion in this regard.
Thanks
The bank should take the responsibility for their error but I don't think they do so. If you feel that you have been cheated or scammed, you can contact an attorney and take his opinion in this regard.
Thanks