Wtf- re-fi nearing close- told today escrow is $2000 short

[78X]

How can this happen? We are in month 2 of our re-fi. Lst year our taxes went up thus our monthly payment went up. W pay one lump sum monthly for the payment, insurance and taxes. Today bank of America called us and said, whoops, your escrow is $2000 short, so now bring another $2000 to closing.

My question is- how can that happen when we pay into it monthly and have had no other issues like this in the past 4 years. (ie- escrow coming up short)

[ARIX]

Unfortunately this shit happens quite a bit. And it hurts when you least expect it. Maybe next year it will go down. Did you contest your property appraisal or do comps?

[talisman]

Mortgage companies usually have a bunch of clowns working for them. Remember that sorta big housing crash that has been going on for about 4 years now? Yeah.

[78X]

Unfortunately this shit happens quite a bit. And it hurts when you least expect it. Maybe next year it will go down. Did you contest your property appraisal or do comps?

No because this year our taxes didn't go up any

[ARIX]

I usually just check to see if any foreclosures went down and what not that could impact your property value.

[SVT Lurch]

How can this happen? We are in month 2 of our re-fi. Lst year our taxes went up thus our monthly payment went up. W pay one lump sum monthly for the payment, insurance and taxes. Today bank of America called us and said, whoops, your escrow is $2000 short, so now bring another $2000 to closing.

My question is- how can that happen when we pay into it monthly and have had no other issues like this in the past 4 years. (ie- escrow coming up short)

See bold and underlined portion of quote.

They (along with the title company and their attorneys) simply didn't do their homework. There should have been a form you signed at closing that showed your escrow account for the next year with one of the amounts indicated as the lowest acceptable cushion amount.

What ARIX is describing can happen in the future when taxes or insurance go up more than the servicer estimates, but if you just refinanced you should be on a fresh escrow account that should not be short for at least 1 year.

If I read that wrong and you haven't closed yet then your loan officer and processor need to brush up on counting the months of escrow to collect.

Mortgage companies usually have a bunch of clowns working for them. Remember that sorta big housing crash that has been going on for about 4 years now? Yeah.

If it's any consolation there are now 1/3 of the licensed loan officers that there were in 2007. Most of the ones that didn't know what they are doing are gone.

[Broncojohnny]

They probably want you to escrow the full year's taxes at closing.

[SVT Lurch]

They probably want you to escrow the full year's taxes at closing.

They shouldn't do that for 2 more months. They should only collect 10 months for closings in July with the first payment due in September. That way you pay September and October (2 months) plus the 10 in escrow = the full 12 months for the bill that goes out in October for most North Texas counties.

[KBScobravert]

No because this year our taxes didn't go up any

Sounds like they did. Up $2,000.

I have an escrow overage every year (knocks on wood). That money is my little savings for a new pistol this year.

[78X]

what form can I request from them to ensure they are doing all this right?

[franks]

Mortgage companies usually have a bunch of clowns working for them. Remember that sorta big housing crash that has been going on for about 4 years now? Yeah.

100% agree, mines through colonial and my payment went from $6xx to $9xx because they can't do 3rd grade math and then you have to fight them to get it back right if I had $60k I would pay it off and tell them why.

[DieselSmoke]

It happened to me and my monthly payment jumped up a shit ton. The mortgage company never readjusted after i was got up. I requested a audit and my escrow was $1900 over for the year. They cut me a check, i put that into principle and then they readjusted my mortgage.

My property taxes increased along w/ my home owners insurance and my mortgage company did readjusted until i was in the hole. Shortly after i changed my property insurance to USAA and it dropped almost $600 a year.

[SVT Lurch]

what form can I request from them to ensure they are doing all this right?

If you haven't closed just ask for a detailed fees estimate. Otherwise I think they call it an escrow analysis statement.

[Rotortrash]

I love how the banks/closing companies say "Bring another $2000 to closing" like just everybody has that kind of cash laying around. It seems like when they find a short fall of that amount, it should generate an immediate phone call to the applicant. That kind of money could be the deciding factor for a lot of people on if they got the loan or not.

[AdamLX]

Bank of America rules: your taxes are to be paid in full if they are due within 90 days of closing and your insurance is required to be paid in full if it is due within 60 days of closing.

If neither of those are your situation then you need to get someone else on the phone to have them review it.

I bet they haven't drawn up your HUD statement yet. An easy way to compare escrow numbers is to see what they have you projected to escrow per month for taxes and insurance to what you are paying currently.

I cannot count how many times I had to argue with moronic processors who only relied on the system to calculate the figures when they were obviously wrong and would not be corrected until the actual HUD was completed.