01-16-2014 11:30 AM
my parents have two properties with two lenders...both properties have escrow...there was an issue that caused some frustration and we wondered about waiving escrow so we can pay our proerty taxes directly with our township....
i called chase and they told me when the note originated, the agreement was to have escrow for the duration of the loan...i understand policy and agreements...i was curious if we can pay a fee to waive it regardless of what we agrees upon years ago?? anybody have experience with this with chase??
for the record the homes are worth over 350k each and the notes are mature in 6 years. there is plenty of equity to waive escrow...we dont want to refinance but i was curious if we threaten to refi would the bank buckle and allow us to waive it...
01-16-2014 11:49 AM
At the time of the loan, if your parents didn't opt to have an escrow account, there was likely an additional fee of .25% of the loan amount to be charged. I'd call up and ask Chase if you can pay an "escrow waiver fee" in order to allow them to pay their taxes/insurance on their own and also point out the equity they have. Chase isn't required to allow it to be done, but it may be an option. With 6 years left they aren't paying Chase much interest now, the bulk of each payment is principal, so threatening to refinance away from them may not carry much weight.
What was the issue that caused frustration? Any late fees imposed because Chase didn't pay insurance premiums or property taxes on time is solely their responsibility to pay.