Saturday, November 21, 2015

Escrow shortages owed over the years, I'm in 3rd year with PennyMac. :(

THIS IS A REPOST SINCE ITS THAT TIME OF YEAR AGAIN.

****RECAP, 3RD YEAR IN HOME, 1ST YEAR GOT BACK LOTS OF CASH FROM ESCROW OVERAGES, 2ND YEAR OWED THOUSAND MORTGAGE GOES UP, 3RD YEAR OWE THOUSANDS, MORTGAGE GOES UP.  TAXES HAS ONLY INCREASED BY A FEW HUNDRED, I DO NOT HAVE PMI AND MY HOME INSURANCE IS NOT IN MY MORTGAGE.

***This story starts in my first year.
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Annual Escrow Disclosure Time - Will your mortgage go up postbuild????
Not sure if this is a Ryan thing or not? Or mortgage companies after NVR sells them?

As we all know when you build new they can only assess your land.

But I thought Ryan still look care of that is the estimate? We were even told OVER estimated.

Last year our mortgage was on point, in fact this time last year got a nice chunk back from our escrow overages. Hmmm I wondered about that. Well this year, diff story. Our 2nd year here.


We owe thousands into our escrow along with a jump in our mortgage amount even with paying for the escrow shortage forecasted for next year.

You may ask were we re assessed higher? NO

Did your taxes increase? YES but not this significant amount reflected in what we owe for the upcoming year.

PennyMac is who NVR sold us out to, they have admitted to making a mistake and knocked off a considerable amount due from our escrow shortage. But its still a LARGE amount due OR your mortgage jumps up a SHIT TON instead over the next 12 months.

PEOPLE WATCH WHATS GOING ON WITH THESE "estimates of mortgage and taxes"!!

Anybody else have a noticeable jump in escrow shortages?




20 comments:

  1. Hi- pretty new to your blog (found it scouring the internet looking for info on our home building process. Not too many Courtland Gate Blogs floating around :) Expected to close in late March) This is what I know based on my mortgage from my current home:

    I would ask them to itemize the increases for your escrow. And then compare to your municipality taxes, your HOA and your home insurance. I would also make note if the shortage this year is EQUAL to the overage of last year. Your mortgage should be pretty consistent unless you have 2/1 ARM (which the lowest I have seen was a 5/1)
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  2. If it has to do with taxes, Ryan has no control of this, or the mortgage company. This is all controlled by the taxing body of the municipality or county and they determine when the increase goes into effect.
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  3. Funny you posted this DW. I just got a letter, we are through PennyMac too and it said we are short, but only a couple hundred. What's weird, even though they are saying we are short, our new monthly mortgage for 2015 will be about 600 bucks cheaper. I'm completely confused about this and will be calling on Monday.
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    1. Hi Chrisse, just a follow up for this year since I think Penny Mac is a disaster. We owe thousands again this year for shortage, 2nd year in a row and mortgage goes UP!
      Would be willing the share your escrow experience for this year?
      Delete
  4. Me again, your post made me pull out NVR calculation worksheet that was handed to us during our loan application. This is what is says verbatim:

    PLEASE NOTE: Your first escrow analysis may show a significant overage if it was based on the payment of taxes on land only or on a partial or interim tax in the first year. If you withdraw the overage and reduce your monthly escrow payment it will result in a significant shortage and a substantial increase in monthly payment the next year.

    Do you think this happened to you?
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    1. LC

      Thanks for the input.

      Yes we got money back last year because apparently mortgage co. cannot hold onto that much money. they have to give it back, but at the time you are thinking........wooo hooo!! Lets just use some rough numbers. last year say we got back $1000. This year we owe $2000. So its not a complete balance out, but looking back we should have put aside the $1000 to off set the $2000 owed this year (again rough numbers)

      Last year our mortgage went down $100,, this year when we PAY the escrow shortage the mortgage goes up $100, so its a wash there, and back where we were originally. (But you get excited about the decrease and think it MAY stay there for a little while :(..)

      Also though, keep in mind Penny Mac screwed up a bit and like a said lessened our escrow owed ALOT. Dont see how that happened. I guess had we not questioned it, we would have gotten back a SHIT TON again at the end of next year. Vicious cycle.

      AnyHOW. Hope to anyone out here reading building now, just to be aware of this and be prepared.

      And NO...
      No reassessment
      Our homeowners is NOT in our mortgage
      Sure our taxes went up a little bit.
      Delete
  5. I have PennyMac as well. My taxes seemed to have doubled! So i called them last week and was told that they will call my county to double check. She also mentioned that their tax dept is backed up and they will call me back.
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    Replies
    1. Well thats a bunch of crap!!! I asked for a manager and got it taken care of right away on the phone, but Im aggressive, Not sure if you are :)
      Good luck, let me know how it goes.
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    2. Went up 241$ , phew. At first my monthly went up by 1200! I have to do my research though because i thought i was getting money back because we moved in March.
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  6. We have pennymac too, and i even I anticipated being short on escrow once they refunded $2500 back to us. I called once i got the refund (since they were basing on the pre-house taxes on the land), and they advised that they couldn't hold excess money until they got a revised tax bill from the county. The service agent did advise i can send in an extra 50-100/month back into escrow without triggering a refund so a big lump sum wouldnt' be due to escrow once the tax bill came.

    Low and behold, i get the new tax bill that's fairly close to NVR's estimation, fax it over to their escrow department and what do they do? send me a refund on escrow! i got a letter about a week after that saying i had insufficient funds to pay the bill and they would be collecting the needed amount over the next 12 months or I could just pay a lump sum. We get significant tax breaks years 1-4 since our house is leed certified, so i expect another jump in year 5.
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  7. Same for us...and we have PennyMac too. But it's all about the increase of taxes and the amount of money we have to have in escrow as dictated by the law and PMI.
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    Replies
    1. Danielle, ya it seems it comes down to this damn separation of land and building, and when your county catches up it seems. I dont think its ryan related. We dont have PMI or home owners in our mortgage either. so it simplifies even more. thanks for the input. Happy Holidays
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  8. They did the same to us ! We have pennymac and ours just shot up Huge this year ! I wish they had communicated this would happen !
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  9. I have PennyMac also and now I have anxiety over any mail I get from them. So far I haven't received anything regarding escrow account, but I will be paying attention. Thanks for sharing.
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  10. Thanks for posting this - and frankly this scares the hell out of me now.
    We just got a huge chunk of change back from our external mortgage company. Not gonna lie - I'm still super happy that I used my own lender and closing company and now have a mortgage company that has no ties to Ryan/NVR/Heartland.
    BUT - we did just get a huge check from escrow overages and this is the same exact thing that I was concerned about when we got the check. Come this time next year,..../sigh
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  11. How did you get the wreaths to hang on the window in the morning room
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  12. How did you get the wreaths to hang on the window in the morning room
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  13. Hi Dana, I use suction cup hooks.
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  14. Great post, we moved in at the end of August and just recently received a huge check from NVR. I'm now concerned about the escrow situation.
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    Replies
    1. HEY OWEN, yup first year happened to us as well, nice chunk of change we got back from escrow, the following year we owed back thousands and mortgage went up 2015, and now 2016 our escrow is short again by thousands we owe and mortgage goes up.

      I just don't get it, its been our 3rd year now.

      Again
      Taxes only went up a few hundred
      I do not have a PMI
      and my home insurance is separate from my mortgage.

      What gives? I think PennyMac is a mess, or im just really stupid.
      Delete

6 comments:

  1. I'm really sorry you are stuck with PennyMac and having so much trouble with them. =(

    We've had the opposite experience with Wells Fargo. We've gotten a check back each year from escrow overage and a small drop in our mortgage payment. We always throw the check in savings because I'm always paranoid about something like this happening to us too.

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  2. I'm starting to think we should put those funds aside also. Since we got so much back does it also mean our mortgage payment will also go down?

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  3. The escrow is re-calculated based on how much you've paid in property taxes in the previous year. I'm pretty sure I'm gonna have a similar situation as you because for the first year my taxes are low due to a low assessment and we won't get re-assessed until spring. You're not getting hosed at all, it just takes a few years for everything to "equalize". The same thing happened on my last mortgage too. Since you're in your third year now you should have a good idea how much your property taxes are, just make sure that the yearly update for the escrow shows an amount that is slightly higher than the taxes you've paid. If it isn't, then I would call and find out why it is so low.

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  4. We received a check for over 5k after 1 1/2 years in our home, that was the interim tax they had not billed yet but they couldn't hold onto it after the 1st of January of the first full year (by law they have to give it back) then shortly we received the bill for that amount or round about for the interim taxes, I believe it was even more, maybe 2k more, we didn't even cash the check yet and told Penny Mac to just use that toward the interm taxes, and what's funny is THEY didn't even understand it! I had to explain to them that it was a new build and these are the interm taxes, honestly I had to do their job FOR THEM! It was such incompetence. Luckily our Ryan homes rep was so awesome and she stressed that we would get a check and not to go wild and spend it like a kid in a candy store, I just thought it would have occurred sooner and not 1 1/2 years after we closed.

    Other than that, our mortgage fluctuates but only by 20-40$ and usually in our favor, but this year taxes went up but not by much, we are actually lower than what our original estimate was. I can't wait though to pay this sucker off though so we don't have to deal with Penny Mac anymore!

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  6. Your situation sounds absolutely dreadful. That's the thing about having a mortgage - the costs can change from year to year due to taxes, market factors, etc. Unfortunately, you can't really do too much about this unless you want to avoid the situation entirely by either renting or saving up to buy the place with cash.

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