Taxes (credit, lenders, attorney)

[lh_newbie]

If your lender paid off your taxes without your prior written approval - then I have no idea how you could be legally required to pay them back. They f#*@&d up big time. I'd make them eat it, but I'd say thank you.

[dallastxgirl]

If you are talking about property taxes, they are very high in TX period. Our home in Dallas area is $250 and the property taxes are $6K per year, now. Our house was a new construction, and they appraise here once a year, period. So the initial appraisal on our house was on the lot only. Are you with me here? The house was built and sold by October. If it had not sold until the following Feb, then an appraisal would have been done with the home on it. We knew that the appraisal would be significantly higher. Most mortgage companies prefer to pay the taxes. To get a mortgage with no escrow, or impound acct, you have to usually have one or more of the following, a big down or 20% equity or more equity in your home, or pay a fee, or have a higher interst rate. You have to ask for that up front. Once that is done, I would question a mortgage company paying out a huge chunk of money on an acct with no escrow. That is weird. As far as the recommendations that an escrow, or impound acct is a good idea, the best idea would be to put the money needed in your own bank acct where it is eaarning interest, and pay it all yourself. You need to be responsible to do all of that, in addition to qualifying as stated above. Good luck with making a mortgage company eat anything. I would review closing paperwork. Even then, if your mortgage has been sold, once, twice, or more, (happens all the time) you are talking about a huge battle. Good luck to you!

[lpepping]

Are your property taxes 6K with a homestead exemption? Just curious.

[ladysrodgers]

Originally Posted by dallastxgirl

If you are talking about property taxes, they are very high in TX period. Our home in Dallas area is $250 and the property taxes are $6K per year, now. Our house was a new construction, and they appraise here once a year, period. So the initial appraisal on our house was on the lot only. Are you with me here? The house was built and sold by October. If it had not sold until the following Feb, then an appraisal would have been done with the home on it. We knew that the appraisal would be significantly higher. Most mortgage companies prefer to pay the taxes. To get a mortgage with no escrow, or impound acct, you have to usually have one or more of the following, a big down or 20% equity or more equity in your home, or pay a fee, or have a higher interst rate. You have to ask for that up front. Once that is done, I would question a mortgage company paying out a huge chunk of money on an acct with no escrow. That is weird. As far as the recommendations that an escrow, or impound acct is a good idea, the best idea would be to put the money needed in your own bank acct where it is eaarning interest, and pay it all yourself. You need to be responsible to do all of that, in addition to qualifying as stated above. Good luck with making a mortgage company eat anything. I would review closing paperwork. Even then, if your mortgage has been sold, once, twice, or more, (happens all the time) you are talking about a huge battle. Good luck to you!

You can also get a no escrow account doing PMI financing. I know how the lending industry works, I'm not a novice at it by any means.

The son this happened to, is a mortgage broker himself so he knows the drill. His isn't a new loan, it's over a year old.

As far as I can tell by searching online, the only way a lender can add an escrow account after a loan has closed, is within 45 days of it closing, and they have to notify the buyer in writing.

None of this was done in writing, nor by using any sort of communication, period - they just did it. As you can see, Lakewooder had the same problem with a different mortgage company.

The problem is, the mortgage company just argues with my son saying they're just protecting their interest in the property, and the tax assessor's office is no help either. I can't imagine how it's legal, period. I'm beginning to wonder who is in bed with whom on this....who would benefit from this most? The county? I should think so.

As in Lakewooder's case, the mortgage company even paid the taxes for 2008 for him and my son, which aren't even due for a year!! This is clearly an outsider deciding how and when to spend a private citizen's money.

I'm not sure where Lakewooder's property is located, but my son's is in Collin County.

[nsumner]

Your son's lender is supposed to notify your son in writing if they are going to do it. However, when he closed on the house, there should have been a rider about them having the option to change the loan to include escrow. May be your son was not late but was it a slow pay?

Citi Residential (formerly known as AMC Mortgage) has done this to several people I know. They also take on separate homeowner's insurance and tack it onto the bill and that rate is usually very steep.

The county where the property is located has nothing to do with it either.

[dallastxgirl]

Yeah, we have the homestead exemption.

I am not saying you are wrong. I am just saying that is so strange that they just paid it, if there is no, existing escrow. Of course then raise your payment to cover it. I would be so mad. It is a tough battle. Be prepared to spend a lot of time on the phone. You have to have your ducks in a row too. Examine your closing paperwork closely. I know in the past that my taxes would go up a bit, and my homeowners insurance would go up, and if the mortgage company had to pay a bit out of their pocket to cover a shortage in escrow, they completely freak out. They raise the house payment, overcompensating for the shortage, then you have to wait for a refund at the end of the year. You know who is getting all that interest. Not us. I really hate escrow. Even if you let them "help you" by taking care of all the worrisome work, you can get royally you know what. One thing they do not do for you, even though they are making a buttload of money, is if your taxes or insurance do go up, let you know, so that you have the option of paying that difference out of pocket that year, then putting that amt in your escrow, bit by bit if necessary to cover it the following. Nope, you have to check all that yourself. One year my homeowners insurance jumped significantly. My mortgage company paid it, then my house payment went up. My husband and I were both in that 60-70 hr work week and so busy. I called the insurance co. and after a bunch of research, they found that my one and only homes status had been changed to a seasonal home. Don't I wish. I had been with them for years too. So they fixed it while we were on the phone, and my ins that year actually went down. Think the mortgage company will make any changes?. No friggin way. I had a huge refund check that year. All I'm saying is it is an aging fight. Good luck.

[ladysrodgers]

Originally Posted by nsumner

Your son's lender is supposed to notify your son in writing if they are going to do it. However, when he closed on the house, there should have been a rider about them having the option to change the loan to include escrow. May be your son was not late but was it a slow pay?

Citi Residential (formerly known as AMC Mortgage) has done this to several people I know. They also take on separate homeowner's insurance and tack it onto the bill and that rate is usually very steep.

The county where the property is located has nothing to do with it either.

Yes I know they're "supposed" to do it in writing, but the reality here in the DFW area, is the mortgage companies are NOT complying with the laws, and are seemingly running amuck doing whatever they please, with no accountability, and no recourse for the homeowners.

No he's not a slow payer, and I doubt Lakewooder is either. The taxes weren't even due until this month; Citi Residential did this some time in November and as I said in another post, they paid his 2008 taxes that aren't due until a year from now.

The million dollar question, is how can citizens prevent these lenders from spending their money for them???

[ladysrodgers]

Originally Posted by dallastxgirl

Yeah, we have the homestead exemption.

I am not saying you are wrong. I am just saying that is so strange that they just paid it, if there is no, existing escrow. Of course then raise your payment to cover it. I would be so mad. It is a tough battle. Be prepared to spend a lot of time on the phone. You have to have your ducks in a row too. Examine your closing paperwork closely. I know in the past that my taxes would go up a bit, and my homeowners insurance would go up, and if the mortgage company had to pay a bit out of their pocket to cover a shortage in escrow, they completely freak out. They raise the house payment, overcompensating for the shortage, then you have to wait for a refund at the end of the year. You know who is getting all that interest. Not us. I really hate escrow. Even if you let them "help you" by taking care of all the worrisome work, you can get royally you know what. One thing they do not do for you, even though they are making a buttload of money, is if your taxes or insurance do go up, let you know, so that you have the option of paying that difference out of pocket that year, then putting that amt in your escrow, bit by bit if necessary to cover it the following. Nope, you have to check all that yourself. One year my homeowners insurance jumped significantly. My mortgage company paid it, then my house payment went up. My husband and I were both in that 60-70 hr work week and so busy. I called the insurance co. and after a bunch of research, they found that my one and only homes status had been changed to a seasonal home. Don't I wish. I had been with them for years too. So they fixed it while we were on the phone, and my ins that year actually went down. Think the mortgage company will make any changes?. No friggin way. I had a huge refund check that year. All I'm saying is it is an aging fight. Good luck.

It is strange, and I'm sure it's illegal, but what's the recourse? You can't get any help from the mortgage company, they're down right rude and claim they're protecting their interest. How is paying a property tax a year in advance without any notification at all to the homeowner legal??

What body (if any) regulates the lenders in this state, and who enforces their regulations?

[Debsi]

You could try contacting the Dallas office of the Federal Trade Commission.

[ladysrodgers]

Originally Posted by Debsi

You could try contacting the Dallas office of the Federal Trade Commission.

Thanks Deb, I'll pass that along to my son.