can someone tell me what the hell an escrow account is for and why i would need it for an insurance policy.
long story short, i think i am gettin nickel-and-dimed by a company
b******* screwin me out of money!
and i don't like it!

__________________
"I'll make you an offer you can't refuse"

i was also told to review the RESPA law
and that an escrow analysis is done each yr to review rates and adjust premiums
anything?

__________________
"I'll make you an offer you can't refuse"

An escrow account is a holding account, and in the sense of a mortgage company having an escrow for insurance and taxes it is a non-interest bearing account that you put money into out of your monthly payments that go to your mortgage company.

This is set aside for your mortgage company to be able to pay the taxes and insurance on your property. It is a tedious and wierd process in that taxes are paid in arrears and insurance is paid in advance. So there may be a difference from year to year on the amount that you will have to pay for your note depending on the rate that your insurnace or property taxes go up. If there is a deficiency (which happens a lot when assesments on property changes) you will have to pay more next year to offset it or less depending on price of an insurance policy etc.

You can also change insurance companies even while the taxes and insurance are escrowed, but it is a paperwork nightmare and a pain in the butt.

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Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com

yeah tell me about it
i called the mortgage company and the lady told me that even if i switch to a third party insurance agency, they (mortgage company) would still keep the escro account open and force me to pay even if i could pay the third party directly.
on top of that the escrow account is making my payments go up by about $120/mo for no reason
they "cushion" the insurance policy that way and the thing itself is 1200 for 1 yr but only covers the building itself
no personal or liability coverage at all
i'm being ripped a new one and don't seem like i can do anything about it
just to make it spicy - the mortage company has been reported to the BBB multiple times for the same kind of crap
I'M PISSED!!!!!!!!

__________________
"I'll make you an offer you can't refuse"

They usually have a insurance request form to make a change or something of that nature. I have heard of it taking as long as an entire year to pull it off though.

__________________
Steven Brown
Cash 4 Houses, LLC
HomeVestors
Mobile, Al
251-366-HOME
steve.brown@homevestors.com

Hey SS.

Inquire about the escrow company using an interest bearing acct. in Ca. you have the choice, but anytime there is an investor involved and the home is not owner occupied they have to use some sort of acct. . The only way around it is if you use the property as a secondary residence until it is ready to be sold ( make sure you do not have a prepayment penalty ) that will cost as much as you can gain. If you can use the property as a secondary residence you also have the option of using conventional financing it sounds like they are going FHA so they can sell they loan on the seconds market. Thats about all I got on that one

__________________
Kevin Scott Usher " Opening Doors in Shasta County " :
" Team Kirk "

Coldwell Banker C&C Properties
2120 Churn Creek Rd.
Redding, Ca 96002

Cell: 530-638-9766
Home: 530-357-2522
Office: 530-221-9671
Office: 530-221-9651
:

yeah, i talked to another lady (same place) and she told me that if i choose 3rd party insurance company, then i have to let the other insurance know i have an escrow account, mortgage pays insurance co out of my escrow account with my inflated mortage payments, and anything left over at end of year would be "rebated" back to me
i have this gut feeling this isn't going to end well for me

__________________
"I'll make you an offer you can't refuse"

If you own your home and have a mortgage, you most likely have an escrow account for your primary residence.

Escrow accounts are just deposit accounts that you contribute to each year to pay the property taxes and hazard insurance when the bills come due. As a general rule, you have to contribute enough to your escrow account to have at least two months of tax and insurance payments in the account at all times. This gives you a little padding to handle the increases in property taxes and insurance premiums. The lenders want you to have escrow accounts to insure that you don't lose the property for failure to pay your property taxes. Additionally, the lender requires you to have the property adequately insured against loss to protect their loan. The best way to insure that you are insured is to pay the insurance premium themselves out of your escrow account.

If the bills were higher than the amount you contributed during the year, you will have an "escrow shortage". The lender will prorate this shortage over the next year and add that amount to your monthly mortgage payment in addition to the prorated amount that your taxes and insurance went up. Part of the increase in your monthly escrow payment is to cover the increase in your property taxes and hazard insurance while the rest of the increase is to make up the shortfall you had in your account from the previous year.

If you are going to get conforming loans so you get the best interest rates, you will have to accept and live with escrow accounts. Some states require lenders to pay interest on escrow accounts. If your state is one of them, then the interest will be added to your escrow balance at the end of the year. If the interest is more than 10.00 you will also get a 1099 to report the interest income on your tax return. When you pay off the mortgage, any amount left in your escrow account will be refunded to you.

You have the right to shop for your own insurance policy. The "forced placement" policies offered by the lender are the most expensive policies you can get. You can do much better if you shop for your own policy. When you find an insurance carrier, give them your mortgage information (loan number, loss payee information, customer service phone number). The insurance company will set everything up with your lender to have the premium paid from your escrow account.

yeah, no way to get out of that one.
turns out we signed muti-year agreement for insurance and the escrow account is for the life of the loan.

the analysis they mailed me had a hefty "cushion"
seems like they are jacking up the price way too much for a small increase
more like "padding" their pockets

i was told this by their customer service dept but when i checked out the BBB, i noticed they have muliple complaints regarding this - people not being refunded

i have found someone, but i'm confused about what will happen.
in theory, if the insurance will be cheaper than what i pay for now then that should mean that my mortgage payment should come down (mortage = principal balance + insurance/taxes/fees) right?
but then they beef it up a little for the escrow payments.
after talking with the serv dept, they said that my payment will remain the new higher rate no matter who i choose to be insured with regardless of premium, etc.
that can't be right? right?
they did say that any surplus amount from the escrow would be refunded to the principal balance, but wouldn't that mean my mortgage payments would come down further?

i just feel like everyone is going the long way around/back door to screw me over

__________________
"I'll make you an offer you can't refuse"

for anyone interested: the mortgage company is VANDERBILT and the parent company is CLAYTON HOMES.
look them up yourselves (BBB)
you will understand what i'm talking about

__________________
"I'll make you an offer you can't refuse"