View Full Version : Need Legal Advice
04-04-2006, 02:55 AM
Is there anyone here familiar with mortgage legalities? I need to have someone in Texas who can help me with some questions I have in reference to my mortgage company. This deals with Midland Mortgage Company. Did a search on them and didn't like what I found. They just sent me a new annual escrow account statement. They had recently sent me one at the end of last year about Nov - Dec. From that one it covered the payments for one year. I have almost finished paying my home and fear that they will somehow try to make me pay more than I actually should. Or to somehow make me lose my home. They raised my payments to almost twice the previous amount I was paying. They claim that I now owe or am short in my escrow more than 1,250.00. Last time they sent me the other statement they claimed I owed them a bit over 200.00. I have a hard time believing that this can be correct. Something smells here and I want to know if anyone has any idea what I may be facing here with this company. They already have been doing several things that I find questionable since my account was changed to them.
These are the links I found about them ...
Any help would be gratefully appreciated.
BTW, the company is in Oklahoma, OK.
04-05-2006, 12:15 PM
Mine went up as well (not the same mortgate co) due to the increase in insurance. Did you have any changes like to another insurance carrier? Increase in tax? etc...
04-05-2006, 12:59 PM
Call Them.......there Is Not Need For An Attorney Or Anything Else. Either Your Taxes Or Ins Or Both Went Up. Caps On-
04-05-2006, 09:43 PM
If you call them they will tell you why it was increased. But you said you are in texas. It probably is your insurance rate went way up. In florida, home insurance has increased by 20% or more every year for the past 3 years. Plus these insurance companies are forcing the homeowners to insure their homes at full replacement cost. So they might have increased the value of the dwelling coverage amount.
Fine out who is insuring your home and at what price. And if the mortgage company put their own inforced insurance on it you are probably paying to much. Shop around, you can pick your own insurer.
04-06-2006, 11:17 AM
Midland was shut down in MD by our attorney general. Some of there practices have been very shady and in violation of the law. Ask, get it in writing and keep records.
04-06-2006, 11:26 PM
Thank you all for your replys and suggestions.
Cheesecake, thank you for letting me know of this. I had been thinking of just getting out this mortgage company in whatever way could be possible.
Today, I went to my credit union to talk with a loan officer. Showed her the escrow statement they had sent me last month. The day I opened that letter which I had not seen yet, I just about fell over in my chair. Luckily, I was sitting down and the chair has a back that supported me in my surprise. My payment had been doubled. In October they had sent me one for a year's estimation of my new payments and the balance on the supposed "escrow" they claimed was a bit over two hundred short. They had raised the payment but it was still more reasonable. Keep in mind that this was done in October. Now in March, they said I was short over $1,000. After I calmed down, I looked at the statement carefully. They had tripled my hazard insurance price. They have never sent me any info as to how, how much or what is covered in it. Therefore I don't even know how, or what is covered. Also, it does not have flood insurance which supposedly I have to have. They are also charging me a separate amount for that. The taxes here did not go up that much here so the amount was not raised that much either. It was all the so called "hazard insurance" that they skyrocketed on. Unbelieveable.
Anyways, the loan officer suggested that I call them and ask why the rate is so high and also that they give me something to show me what is covered. She also suggested that I ask my ending balance as of this month. From there I could decide to continue or possibly borrow the balance from my credit union bank. My credit is good with them and they could lend me the amount so I could pay it all off with the signature loan they can lend me. After reading what you(Cheesecake) have told me, I have made my decision to end my contract with Midland. I will ask them for the balance and get the money from my bank instead. This will be done tomorrow after my doctor's appointment. I am very upset at this company and want nothing to do with them.
So wish me luck and pray that this will bring me less problems. Thank you all very much for your advice/suggestions. I really appreciate it all.
04-08-2006, 08:46 PM
Raven, I write home insurance every day and I know what your going through. But changing mortgage companies might not be a good idea. Let me explain.
The insurance portion of your mortgage is going to follow you no matter which company you have. The company you have now has what they call inforced insurance on your property. Which only covers them. What you need to do is call them and tell them you will get your own insurance. It sounds like texas is going through the same thing florida is going through. And your insurance is going to be 3 to 4 times higher then what it was a few years ago.
And please, and i'm serious about this. Do not put any trust in that mortgage guy at the bank. I know many of them, and they are a rare breed. They are all sharks. If he's getting your monthly payment down make sure you know what your signing. There are a lot of fancy mortgages out there and they'll take your house in the end.
The best thing for you to do is go see a real estate attorney. It will cost you some money, but you'll save yourself a lot in the long run.