Re: Lowering Escrow Payment[ Edited ]
01-27-2013 03:28 AM - edited 01-27-2013 03:31 AM
My understanding is that they can forecast future payments based off of previous payments (IE the increased amount of your HomeOwners insurance). And if that forecast drops below $300 POSITIVE, they can require you to send in more money for escrow to raise up the account.
If you don't send in the extra, I'm pretty sure that they would start charging you late fees on the "missed" escrow payment.
My mortgage is with BOA and I like them most of the time. But I wouldn't expect them to miss a chance to charge you a fee.
Big picture they are just acting as your agent and the increased amount they are asking for is to pay your bills associated with the property. Not giving them the money to do so is not really an option.