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jonnyclueless t1_iyd3a3p wrote

Mine went up $400. The reason was that the previous owner was old enough to be exempt from some of the taxes. When the taxes went back up (I am not old enough to be exempt), the mortgage company did not increase the amount in escrow. So they had to jack it up to pay for the taxes they forgot to pay. Next month it should go down to what I was originally supposed to pay.

Just mentioning this in case yours is a similar reason.

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sephiroth3650 t1_iydzksy wrote

>So they had to jack it up to pay for the taxes they forgot to pay.

How did they forget to pay it? When you got the mortgage, they based the escrow balance needed by what the previous owner was paying. When it came time to pay the bill, the escrow account was short, because your tax bill was more than what was estimated. So they covered it, like an overdraft at the bank. The next year, the payment went up to cover the 2 parts. One part was paying back the overdraft. The other part is building up the escrow account to be enough to cover the next bill. Generally, they send you an escrow analysis and give you the option to pay back the overdraft in one lump sum up front, so that your monthly payment only goes up enough to cover the next tax bill.

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jonnyclueless t1_iye06f4 wrote

Exactly. Except I had to contact them to find out why it went up. Next month it goes back down by about $200 because they have caught up.

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sephiroth3650 t1_iye3gav wrote

So your lender didn't send you an escrow analysis and notice that the monthly payment was changing? That would be the typical process. But maybe they didn't send it, or it got lost in the mail. Normally you get a notice in the mail telling you that it's going up, and they give you the option to pay the shortfall in a lump sum to avoid it going up as much.

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