flacoinohio profile image 86

Can a mortgage service company increase payment due to the tax escrow having a negative balance?


Our mortgage was just purchased by a new servicing company and the tax escrow has a negative balance due to a recent increase in our city taxes. The service company did not call or send a notice showing a negative balance on the escrow account they simply raised the amount of the monthly payment by $36. The escrow is $200 to the negative and the balance was added to our loan meaning that we are paying $160 in interest on a balance we were not aware of. We always pay the negative balance without having an automatic modification by the company. Is this legal?

 

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LandmarkWealth profile image81

LandmarkWealth says

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5 years ago
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  • flacoinohio profile image

    flacoinohio 5 years ago

    This new mortgage servicing company raised the monthly payment without sending an escrow statement indicating a negative balance. The increase is based on an estimated negative balance, not an actual negative balance. We had no down payment.


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duffsmom profile image60

P. Thorpe Christiansen (duffsmom) says

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5 years ago
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  • flacoinohio profile image

    flacoinohio 5 years ago

    I don't believe they will, check out complaints on RCS in FT. Worth TX.