My mortgage was just sold & now im having issues w/ escrow acct

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My mortgage was just sold & now im having issues w/ escrow acct

Emmanuel Solorio
Investor · Saint Petersburg, FL · Member since 2020 · 3 posts · 0 votes

My mortgage was just sold to PNC bank in August and now I’m having issues w/ my escrow account. PNC bank is saying I’m really in shortage, they’re trying to collect next years estimated taxes/insurance in advance. My current yearly escrow w taxes is approximately 18k, so an additional $1.5k a month to my mortgage. They’re assuming the same cost and wanting to collect the additional 18k in advance before it’s due in august and November so they’re tacking it on to the escrow acct. Is this a common practice? They didn’t do that with my last mortgager. Is there anything I can do?? Any help will be greatly appreciated. Thanks!

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  • Jason WrayPro Member
    Banker · Nationwide · Member since 2020 · 2k+ posts · 1k+ votes
    2y

    Emmanuel,

    If your loan officer did not set up accurate/enough months held for escrows tax/Ins the new lender will do an escrow analysis and require the sufficient amount. You can reach out to a few insurance agents to see if you can get a lower quote for the home owners insurance. You might also want to check for any Homestead, Save our homes or tax exemptions you might qualify and check the deadlines to apply for the tax exemption.

    Last resort reach out to the county and apply for a new tax assessment or appeal your current one due to inflation/other.

    You might also want to call your Loan officer and their Branch Manager and find out how the ball was dropped on insufficient escrows being held at closing. If this was not the case you may have just had an excessive Insurance and Tax increase for 2024. I would still try the above.

    [email protected]727-637-4289
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  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    2y

    If your loans LTV is 80% or less, you can simply close the escrow account and pay your taxes and insurance yourself

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
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  • Emmanuel Solorio
    OP
    Investor · Saint Petersburg, FL · Member since 2020 · 3 posts · 0 votes
    2y

    @Jason Wray

    Thanks Jason! Sorry, I should have mentioned this is my third year owning the home and the new mortgage holder has different criteria than my last one in regards to my ongoing escrow account. My previous holder paid it all when it was due then I paid it over the next 12 months. My new mortgage is doing the same but now tacking on the estimated following year escrow too. They want it all in advance before it becomes due in august and make the payments for me. Never had this happen on ANY of my previous homes.

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  • Emmanuel Solorio
    OP
    Investor · Saint Petersburg, FL · Member since 2020 · 3 posts · 0 votes
    2y

    @Russell Brazil

    Thank you. That looks to be the only option that I’ve been seeing right now. Was hoping to hear there was an option or a way to speak to PNC and prevent them from doing this. Like opting out haha

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