Here’s the whole question…
“My husband and I obtained a loan for a new house in December of last year. We recently were notified of an escrow shortage of close to 2300. If we don’t pay this our mortgage is due to increase more than 400.00 per mo.
After some digging we discovered that the reason for [...]

Here’s the question,
“Can a mortgage company, in this case the dreaded Litton Loan Servicing, pay my past due property taxes without my consent, thus creating a negative escrow balance which I am expected to rectify?
I know as alien-holder they can purchase homeowners insurance if the owner lets it lapse, but do they have the same [...]

Escrows Defined
In regards to a real estate transaction, an escrow is when money is placed with a third party in an account until both parties execute the agreement. For a mortgage, escrows are money placed in an account so the taxes and insurance can be paid when they come due.
When you buy your house, [...]

The question first…then my answer.
“I was under the belief that if my lender was holding funds in escrow for my taxes and insurance, I was owed some nominal rate of interest. Is that true? What if they over escrow…I get the money back, but shouldn’t they have to pay me interest at least [...]