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Discussion Starter #1
a few weeks ago I just happen to look at our mortage bill.
It has our principal balance XXXXX then escrow XXX.XX then escrow (same amount) XXX.XX.

I called our company Chase and they tell me because i need to pay back back taxes. I
tell them i've never owed back taxes but they say yes I did. So the wife goes down to the town hall
and they print out the payment history and tell jill there have never been back taxes owed.

Jill gets back on the phone with chase and they say the same thing or maybe INCASE my taxes
go up they do not want to be caught trying to makeup the money. Jill says she thought by
law they only could take 10% in advance in escrow with it accumulating interest. they didn't
like her answer and told her they will send out the records of the account.

I get the records and i'm more lost then before. this new record shows amount paid in then amount
paid out and ending balance zero.

One other thing i find odd is about every three months i get a letter stating i need to furnish
proof of insurance for the house. I call my insurance company and they say why are they asking
for this every few months and they send off the info.

I wonder if i'm getting charged for insurance through chase?

oh the joy's of home ownership.

any idea's?
bryan
 

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Yeah, escrows can be a pain. I believe RESPA allows the banks to keep up to 2 months worth of tax payments in escrow as a cushion, but in reality what that means is that they can have up to 5 months of taxes if taxes are paid quarterly. For instance if taxes were due May 1st, on April 30th, they could have had 5 months in the escrow account and once the quarterly payment was made, they'd have the 2 months in the account. They may adjust the amount up or down if your taxes go up or down. They also usually escrow the insurance. Normally you pay the premium for the entire year and then they collect a portion of it through the rest of the year so that when it's up for renewal, they pay the whole lump sum. It is odd that they keep asking for an insurance binder. Maybe your loan is getting sold and they want to know that the insurance is current. The other possibility is that you're not being escrowed for insurance for some reason and they just want to make sure the policy is current.
 

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Discussion Starter #3
QUOTE (HenrySel @ May 3 2009, 07:21 PM) index.php?act=findpost&pid=722603
Yeah, escrows can be a pain. I believe RESPA allows the banks to keep up to 2 months worth of tax payments in escrow as a cushion, but in reality what that means is that they can have up to 5 months of taxes if taxes are paid quarterly. For instance if taxes were due May 1st, on April 30th, they could have had 5 months in the escrow account and once the quarterly payment was made, they'd have the 2 months in the account. They may adjust the amount up or down if your taxes go up or down. They also usually escrow the insurance. Normally you pay the premium for the entire year and then they collect a portion of it through the rest of the year so that when it's up for renewal, they pay the whole lump sum. It is odd that they keep asking for an insurance binder. Maybe your loan is getting sold and they want to know that the insurance is current. The other possibility is that you're not being escrowed for insurance for some reason and they just want to make sure the policy is current.[/b]
thanks henry
pm sent
 

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Everybody's real estate values have DROPPED in the last few years, East Coast even worse than some places.

Property taxes are based on property value, which has dropped, so escrow should be 'over paid', if anything. Tell them to go pound sand. Ask for the last evaluation from the county. I would expect to hear nothing but crickets from that point forward.
 

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Property taxes should be still climbing at least for another year. The assessed value will lag by three years to real time.

Best thing to do is say screw the escrow and just put away an 11th of the taxes and insurance every month.
 

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I hate to add fuel to the fire and get you worried more, but watch out with Chase, I had them years ago and they screwed me over big time. Long story short, they bought my mortgage from another company, never sent a notice, I kept paying the original company, Chase never called or sent anything till I was 6 months past due with them, then they called and said they were going to start forclosure in 2 days. I told them I wasnt even with them, they said I was bought 6 months prior and didnt pay them. I had proof that I made payments, but to the old company, but old company never forwarded payment to Chase. Chase wanted full catch up payment in 48 hours or else. I was able to get that done through the other company, but my credit was so screwed up it took years to fix. I questioned Chase about fixing it, they said they didnt have to and to take it to court. My lawer said let it go becasue they have higher priced lawyers and will tie it up for years costing me $$$$. MORAL of the story, watch chase with everything they do and keep 100% of your records and a list of who you talk to with them.
 

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QUOTE (SHOZ123 @ May 3 2009, 08:26 PM) index.php?act=findpost&pid=722640
Property taxes should be still climbing at least for another year. The assessed value will lag by three years to real time.

Best thing to do is say screw the escrow and just put away an 11th of the taxes and insurance every month.[/b]
Typically it's more like two years. For instance, property tax for 2009 is based on the value of property sold at the end of 2007. They spent 2008 collecting that data for 2009. Property value did go down, but will continue to go down for the the next few years. However the way the taxes are calculated, say the budget for the town is based on 500 million in assessed value and that yields a certain amount with a tax rate of $10 per thousand. If the assessed value goes down to 400 million then they just jack up the rate to 12.50 per thousand to get the same amount of money for their budget. Of course maybe your house will go down in value more than others. For instance single families seem to have held their value while condos and multifamilies have taken bigger hits.

Also you can't really say screw the escrow, that's usually the condition of the mortgage, getting a mortgage without escrow usually costs a little bit more. It's one of those things you have to shop around for, some banks don't require it if you have a big enough down payment.
 

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If you use a credit union then the escrow is up to you.
 
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