Capricious
Beach Fanatic
I am seeing reports that bankrupt/closed/vanished mortgage servicers are not making tax/insurance escrow payments.
The escrow money is apparently gone.
The escrow money is apparently gone.
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Escrow
- Thread starter Capricious
- Start date
barefootguy
Beach Fanatic
Our mortgage company chose not to pay our flood insurance, or paid it to someone else. Our insurance company never asked for the money, they just canceled our policy. The company that holds our second mortgage was the one that contacted us and told us that we need to have flood insurance. When we went back to the other two companies they just pointed fingers at each other and wouldn't fix the problem. So we had to get new flood insurance and wait til next month for it to go into effect. Good thing we live in Driftwood Estates ... we'd be the last place to flood if a storm came through!
BeachSiO2
Beach Fanatic
Is this a joke
I am guessing there is a little sarcasm here because DE is one of the quickest flooding areas in sowal.Maybe we should add a little head banging smiley for you!
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scooterbug44
SoWal Expert
Yes, we need a "heavy sarcasm" emoticon!
How can they take the escrow? Is there another word for that besides embezzling or theft?
How can they take the escrow? Is there another word for that besides embezzling or theft?
They stopped funding, declared bankruptcy, fired all the employees and went out of business. Who are you going to call to complain to?
Very scary stuff.
Here's a link you might want to read.
http://www.autodogmatic.com/forum/viewtopic.php?t=1183
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scooterbug44
SoWal Expert
Possibly stupid question: Why is the money in escrow? Why can't you just pay them (tax collector etc) directly?
jlweathers
Beach Lover
you can typically pay both insurance & taxes on your own - however, a lender will call this "riskier" b/c they don't have control & consequently will increase your interest rate. it used to be .25% in rate to waive escrows
scooterbug44
SoWal Expert
So the people who had NO problem w/ jumbo, 0% down, interest only loans and unverified income statements were picky about how John Q. Middle Class saved for his property taxes?
And now those people they basically forced financially to do escrow had their escrow stolen! Why do I feel lawyers will be making some money soon!
And now those people they basically forced financially to do escrow had their escrow stolen! Why do I feel lawyers will be making some money soon!
Miss Kitty
Meow
Is this a joke
Maybe we should add a little head banging smiley for you!
I thought the same thing!
It's more like..Escrew!!!
Mango
SoWal Insider
Where are you hearing this?
The Mortgage Banking Divisions where loans are originated and funded are separate entities from the Servicing Divisions where payments are collected for the Investor whether it be FNMA, Ginnie Mae, etc.
AHM (American Home Mortgage) American Home wants to sell its loan-servicing unit, which collects payments on $57 billion worth of mortgages, at a bankruptcy court auction in early September. (article here)
Another Forbes article here
Right now, everyone is besieging them to give up the loan files that belong to them so they can assume servicing.
I am assuming that until this all gets worked out, they may not be operating the servicing division properly. It's probably a mess over there.
Too bad the people whose quarterly taxes may be due or HO Insurance etc. may have to cough the money up to pay the authorities until this gets worked out, but their money shouldn't be lost.
It will be there for the next quarter or reimbursed back, since the law is you can not over escrow and there is a formula for establishing escrow accounts.
But hail, one can imagine all kinds of possible scenarios.
This YouTube - UFO Haiti should give y'all a laugh. This footage caught August 6th when AHM declared BK.
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