am i getting screwed? need advice from ingo...

[chachi73]

My mortgage lender (wells fargo) just notified me that I'm short on escrow and they are raising my monthly note about $100. The reason is because of a $1600 hazard insurance payment made to the same company (usaa) that I already pay homeowner's insurance to. I refied last October, so this is my first full year with Wells and don't know if this is SOP for borrowing from them.

Does anyone else pay hazard insurance on top of homeowners and NOT live in a flood zone?

Need advice please. Is this some sort of scheme to screw people out of their dough?

Chachi

 

[ruger1800]

Never heard of hazard, pretty sure your getting the shaft, hope you have plenty of ky jelly.

 

[spasmo]

From what I understand and I may be incorrect, I think it is up to your lender on whether they require Hazard Insurance or not. I think a phone call is in order tomorrow though and find out what the deal is.

We had a similar problem but the lender had us listed as being in a flood zone. We had to get a letter from FEMA stating we were not and the lender then took it off.

 

[Booya]

This happens to me (and another good friend) just about every year. One year there isn't enough in escrow and the payment goes up, the next year I've overpaid and I get a check back, so on and so on. I can't speak on the hazard payment deal, I haven't had to deal with that yet. The escrow issue I've had happen to me and seen happen to others. I watch my escrow balance pretty close so it doesn't really bother me, plus I like it every other year getting a check back. Not to mention, Wells fargo sucks at estimating changing (or initial estimates of) property taxes, they go way low to sell the less expensive mortgage.

 

[public servant]

This is why I pay my own taxes and insurance.

 

[Ogre]

This happens to me (and another good friend) just about every year. One year there isn't enough in escrow and the payment goes up, the next year I've overpaid and I get a check back, so on and so on. I can't speak on the hazard payment deal, I haven't had to deal with that yet. The escrow issue I've had happen to me and seen happen to others. I watch my escrow balance pretty close so it doesn't really bother me, plus I like it every other year getting a check back. Not to mention, Wells fargo sucks at estimating changing (or initial estimates of) property taxes, they go way low to sell the less expensive mortgage.

This^

 

[PistolBob]

Wells Fargo is a horrible bank. The first chance you get to refinance, take it. Ask them in writing why you need to have Hazard Insurance on top of regular home owners. You can also call your local assessor office and find out from them if you are in a flood zone, or some other hazardous zone.

Personally, I have never let the bank escrow my taxes and insurance. I can handle my money a lot better than anyone else can.

 

[Mr Evilwrench]

Never had hazard, but my mortgage used to go up and down for escrow payment adjustments. Gotta pay my own taxes and insurance now, and it just goes up

 

[Expat]

You need to make sure they aren't carrying a homeowners policy and paying for it and you are as well. It has happened before.

 

[schafe]

My house is paid off now, but here is an excerpt from a conversation I had with the new lender just after my loan was sold.


Me: Hi, this is schafe. I got a notice that my mortgage payment is going up to $$$...what's up?
Them: You need to fill up an escrow account so we can pay your taxes and insurance.
Me: But I pay those things...why do you need to do this?
Them: So we can insure that they get paid.
Me: But I've never missed a tax or insurance payment.
Them: Sir, we're just exercising our option.
Me: How do I know that you paid them? Will you send me a recipt of payment?
Them: No, we won't, it doesn't work that way.
Me: Really!! So for this year I have to pay double my taxes and insurance to fill up the account and pay taxes and insurance?
Them: Yes sir.
Me: This account earns interest doesn't it?
Them: Yes sir
Me: Who gets that interest?
Them: Well you sure as hell don't!
Me: I guess I see where this is going. thanks a lot.....(hang up)

 

[badwolf.usmc]

This happens to me (and another good friend) just about every year. One year there isn't enough in escrow and the payment goes up, the next year I've overpaid and I get a check back, so on and so on. I can't speak on the hazard payment deal, I haven't had to deal with that yet. The escrow issue I've had happen to me and seen happen to others. I watch my escrow balance pretty close so it doesn't really bother me, plus I like it every other year getting a check back. Not to mention, Wells fargo sucks at estimating changing (or initial estimates of) property taxes, they go way low to sell the less expensive mortgage.

Same thing happens to me every year as well.

 

[PapaScout]

This is why I pay my own taxes and insurance.

This. I am my own escrow.