Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I guess it varies by state, I have WF and live in Maryland. No problem removing the escrow account.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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Wells Fargo said there is no option for me to remove this feature. The state where I live in, PA, does have legal limit on how much bank can hold in Escrow. It doesn't bother me so much but yeah I...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I pay my own RE taxes and HO insurance, have for a long time. I'd rather have the money in my bank than somewhere I have no access to it if I really needed it.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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Wells Fargo padded the first year, gave me a refund for almost a grand, and the next 3 years they got better at estimating so I get refunds of like $50 a year now.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I finally refinanced and got rid of escrow all together.
Through three different lenders prior to that I had nothing but problems with escrow and RE taxes. They just could not get it right no...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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Not that uncommon.
On one of my investment properties, the escrow went up to $6k. I complained and got it cashed out. Lo and behold, the taxes were due a month into the future, and the escrow...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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Yeah, drop it & take care of it yourself. I haven't had an escrow account in 15+ years for the same reason - the bank never seemed to get the amount right.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I invest a fair amount in the market. I def. get a better return on that money I would imagine if escrow account pay what you'd find in a savings account (
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I would view it as opportunity cost. The bank is using your money to make money. Multiply what's happening to you by many more. If interest rates weren't so low then it might be worthwhile.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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My bank sends a yearly statement AND adjusts the payment amount based on the over/under forecast amounts.
Strange how yours allowed such a large amount without alerting or automatically adjusting.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I invest a fair amount in the market. I def. get a better return on that money I would imagine if escrow account pay what you'd find in a savings account (
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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In CT at least there are laws about escrow shortages - if you are short they can't demand the money *right away* (although you could pay it if you want) but instead the best they can do is spread the...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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In short yes and it's only getting worse. The last time I refi'ed it was worth it for me to get an escrow account and the aholes in my HUD charged me for my $1,500 insurance bill and $3,500 prop tax...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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I don't know the rules nationwide but in MA there are legal limits to how much/little can be in your escrow account.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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JP Morgan does this stupid dance every 2 years or so.
They pay my taxes from my escrow account in January one year, then again the same year in late December. Then they freak out and go "ZOMG! ...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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If you call up your bank, they will waive escrow (maybe it depends on your credit score??). I have a 750+. I told them I was mature enough to take care of my own property taxes and insurance and...
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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All the time. I was being charged $400 per month over what I needed. I refinanced and removed T&I from the mortgage which is now only P&I. Refinance and remove it and pay it yourself.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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Same story here with BoA but I caught it sooner. I never recalled being asked to opt in but it was fairly easy to opt out and they sent me a refund check.
Is it common to "pad" escrow so much?
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Thread created 06-27-2014 by Dr. J
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Long story short, due to a bank fark up, I received an escrow refund.
During the process I discovered that my bank (BoA) pads MONTHLY escrow payments by 16% to account for changes in T&I (taxes &...
