Legal Question in Banking Law in Maryland

My property taxes were lowered and I have a escrow overage. Mortgage company will not adjust monthly PITI payment because I am 2 months behind. I have made numerous attempts to get them to simply apply my escrow overage to my payments that are behind. They refuse and keep taking the late fees from the money I send every time I get paid. Seems to me that they are trying to get me to foreclose.


Asked on 8/22/10, 2:53 am

1 Answer from Attorneys
Phillip M. Cook Cook Legal Services, LLC

Your loan documents hold the key to whether your lender can continue to refuse to apply the escrow overage. In all likelihood, what the lender is doing is perfectly within their legal rights (but perhaps morally reprehensible). Don't blame the mortgage company for your woes -- if you pay your mortgage on time, you have nothing to worry about AND you will have a nice little escrow overage at the end of the year (at which time you WILL get the overage back). Best of luck.

*******The above is for informational purposes only and does not create an attorney-client privilege.*******

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Answered on 8/27/10, 3:06 am


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