Profile picture for sentrymale

after modification is made how long do lender have till they raise payments/ rates on loans & escrow

we had a modification done  around 2006...  and I was told that they couldnt raise the rates on the loan.. but after my loan was sold from FIRST FRANKLIN to Bank of America my modified loan went up by $500 give or take..  so does bank of America have the right to raise rates?  also part of the $500 is escrow...   are escrow is for insurance which is $1500 property tax...  and another 1300 for hazard insurance..  so to be safe lets say 3000 total...  at the end of the year we will have payed $4416 so whats the extra 1416 for????  can they charge 2400-3000 for their own insurance???
  • April 08 2011 - Sheridan South
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Answers (5)

Profile picture for sentrymale
I don't see how they cal legally charge someone almost 3X what they could get it for themselves ...  I understand maybe I much higher rate...  like $1600-$1800....  but a whole $2900!! that sounds shady!!!

and the reason I have yet to buy it myself is because they all want a YEARS payment up front....  and $1200 I don't have...  all I can manages is like $250-$300tops that I pay every quarter...
  • April 10 2011
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Could part of the change be the change in costs for your insurance and taxes?  Your mortgage payment can change if what you are currently paying towards taxes and insurance is insufficient to pay them.   Once a year the servicing entity will make adjustments to your escrow to ensure you have enough in the account to pay your taxes and insurance.  If either of the two have increased you could be paying a higher payment to get the escrow account back to the balances needed to cover those bills. 
  • April 10 2011
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Profile picture for wetdawgs
If you haven't purchased hazard insurance yourself, yes, they can force you to purchase it and yes, the price will be higher than what you can obtain.   Is there a reason you've not done so?
  • April 09 2011
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Profile picture for sentrymale
  I don't understand this phrase " so what's the extra $1416 for????  can they charge $2400-$3000 for their own insurance???"   (How does 1416 get turned into $2400 to $3000).

well our escrow should only be $3000 @ most... $1500 for property taxes and roughly $1500 for forced placed (theirs) hazard insurance,,,   but they set the escrow @ $368 brining the total to $4416....   4416 less 1500 = 2916  so they would have to charge us that $2916 for their Hazard insurance... for what we pay extra a month.... almost 3X what we could get it ourselves if we could pay the full amount @ once...  So can Forced placed Hazard insurance be set that high?
  • April 09 2011
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Profile picture for wetdawgs
Pull out your modification paperwork and read it carefully.  Many modifications are for five years only.

I'm puzzled with your numbers, perhaps it is too late for my brain to function.   I don't understand this phrase " so what's the extra 1416 for????  can they charge 2400-3000 for their own insurance???"   (How does 1416 get turned into 2400 to 3000).


  • April 08 2011
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