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2hr phone call with the mortgage company

November 9th, 2012 at 12:53 am

Had a 2hr call with the mortgage company. I got transfered back and forth 5 times until I demaneded that we have a 3 way call. I am 2 months behind on my mortgage. I skipped 2 payments in the spring when I was between contracts. I have been paying regular monthly payments the past 4 months. Anyhow, I applied for the home owners relief program in Oct. Well my app was denied. Apparently I make too much money. But the bank has an internal program where they temporarly lower the interest rate. My forclosure prevention specialist applied for that program on my behalf without me knowing this. Well, apparently as soon as someone applies for this program, they automatically set up an escrow account (my mortgage never had one. I paid the taxes myself). So my property tax comes due in Oct and the mortgage company pays them without telling me. I found this out when I went to pay my property tax and saw that it was paid. So now I have a new escrow account and it is behind. So far this sounds bad but there is a silver lining. My homeowners insurance company dropped me a few months ago. So I found out that the mortgage company is also supplying insurance. The funny thing is that it is less then what I was paying. Now I am not stressing about finding new insurance like I was. So the bottom line is that my mortage payment will go up 200+ a month for a year to get the escrow caught up. After that, it will go down about 150. I used the money that I was going to pay the property tax to make up 1 of my 2 payments, so now I am only 1 payment behind. So overall, they will still get thier money, taxes and insurance are taken care of and at the moment with me and the wife working, we can pay they higher monthly payment. So, I guess overall this was a good thing. I will find out soon if I can get the interest rate deduction. Maybe that will offset some of the escrow account costs.

Posted in Debt | 6 Comments »

6 Responses to “2hr phone call with the mortgage company”

  1. creditcardfree Says:
    November 9th, 2012 at 01:18 am 1352423926
    1352423926

    Interesting. It seems it is working out in some ways. I bet only one month behind feels better, too!

  2. looking forward Says:
    November 9th, 2012 at 03:15 am 1352430904
    1352430904

    You should still shop for your own insurance. Don't trust the bank. They'll get enough to cover them and you'll get the short end. This happed to a friend. He lost his house to a fire and got nothing.

  3. snafu Says:
    November 9th, 2012 at 09:05 am 1352451943
    1352451943

    As lf states, it's likely insurance supplied for the mortgage company only covers the outstanding mortgage. A homeowners policy covers furnishings and personal effects. You would be left with the land. It's your responsibility to get the insurance details and probably cost effective to add on a homeowner's rider if they will accept your application. Unfortunately your credit rating will keep impacting your plans for awhile.

  4. Wino Says:
    November 9th, 2012 at 10:00 pm 1352498423
    1352498423

    I have to second everyone on the insurance scam. I merely ask you to ask yourself this question: Has the mortgage company done anything since loaning me the money to make me think they're on my side?

  5. bikerjohn Says:
    November 9th, 2012 at 10:35 pm 1352500537
    1352500537

    as far as personal effects etc, I don't live in the house so the only personal affects really are the applicances. Hopefully my step kid is smart enough to get renters insurance. I will eventually get my own insurance again but I need to get the gutters replaced first and I do need to pay a few other things first. Realistically, it may be a few months before I can get to that.

  6. snafu Says:
    November 10th, 2012 at 11:27 pm 1352590064
    1352590064

    looking forward and I were trying to say if the insurance only covers the sum owing on the mortgage, there will be no payout to allow re-building at X dollars per square foot.

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