Legal Question in Real Estate Law in Maryland

This is a new one for me, too, and I've been litigating real property and tax issues for over 20 years! Your remedy may be to sue your mortgage servicing company to 1) make them stop paying more tax than is necessary to the authorities; and 2) make them replace the money paid from your account by mistake. Negotiating by phone or e-mail with these entities is slow, frustrating, and often pointless. By forcing them to hire a lawyer, you get to someone with half a brain. You should, of course, continue to make your regular mortgage payments while disputing this issue.

The simplest solution may be simply to drop your escrow if possible. I have not seen this precise scenario, but I have seen a variety of mistakes with escrow accounts and mis-calculations of estimated taxes. Escrow can be helpful for homeowners who prefer to make a single payment and don't want to track insurance and taxes themselves. However, so long as a homeowner owes less than 80%, it is usually possible to waive escrows and simply have the homeowner pay their own taxes and insurance (this election is made by calling the loan servicer and telling them you no longer want escrow).

While the above is general legal information and not personal legal advice, I hope it helps.