Impound accounts

[Kachina26]

Ok, so I wasn't imagining shit. This is exactly what happened to me when I bought my first house. First chance I got, I ditched the impounds and handled the bills myself. Whole number divided by 12, how do they get it wrong so often?

 

[CarolynandBob]

Had an escrow on my first condo. Wasn't that bad, but the shortage was about 300. Never had one again.

 

[zhandfull]

Rising home values and insurance cost. Those with impound account will be seeing higher monthly payments soon if they haven’t already.

 

[Done-it-again]

Rising home values and insurance cost. Those with impound account will be seeing higher monthly payments soon if they haven’t already.

The same goes for someone without an impound. Just your 2 yearly tax payments will be higher.

 

[zhandfull]

The same goes for someone without an impound. Just your 2 yearly tax payments will be higher.

Yep, my homeowners insurance went up over 40% for this year alone.

 

[OCMerrill]

Yep, my homeowners insurance went up over 40% for this year alone.

Same here.

Personally I prefer the impounds. Less the think about and it has to be paid one way or the other.

"The Loan Servicing company is steeling my money"...just look at the annual audit and you will see where every dollar goes.

 

[Tamalewagon]

Ok, so I wasn't imagining shit. This is exactly what happened to me when I bought my first house. First chance I got, I ditched the impounds and handled the bills myself. Whole number divided by 12, how do they get it wrong so often?

If you are disciplined, it is a very good idea to pay your own property tax/insurance. I always suggest to opt out of the impound account. Keep your money in your own account and earn the interest. That's how lenders get additional wealth. Earn interest on your money sitting in their account. Notice that lenders always wait until the very last day to pay your property tax? Every cent...

 

[WYRD]

Pay off your mortgage then you only have to worry about paying the taxes and insurance

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[Kachina26]

If you are disciplined, it is a very good idea to pay your own property tax/insurance. I always suggest to opt out of the impound account. Keep your money in your own account and earn the interest. That's how lenders get additional wealth. Earn interest on your money sitting in their account. Notice that lenders always wait until the very last day to pay your property tax? Every cent...

Ever since I was able, I took care of my own. I vowed never again. I remember the first time they misfigured they sent me a check which as a 20 something year old kid I promptly spent. Fast forward a year later, they told me I was 2k short. I was bringing home a lot less than that a month and things were tight as a young couple with a new house and a kid in private school. I paid up and wouldn't you know it, a year later I got an overage check. Lesson learned, that thing got earmarked for guess what? A fucking shortage the next year.

 

[rivermobster]

Pay off your mortgage then you only have to worry about paying the taxes and insurance

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Ok...

I really did lol at that.

 

[Havasu blue label]

The same goes for someone without an impound. Just your 2 yearly tax payments will be higher.

Thank you

 

[bilz]

Never really had a problem with so impound account. Most of the time it's a twenty buck overage. It does go up with tax or insurance increase. I have always preferred it, especially being single income and poor.

 

[Kachina26]

Ever since I was able, I took care of my own. I vowed never again. I remember the first time they misfigured they sent me a check which as a 20 something year old kid I promptly spent. Fast forward a year later, they told me I was 2k short. I was bringing home a lot less than that a month and things were tight as a young couple with a new house and a kid in private school. I paid up and wouldn't you know it, a year later I got an overage check. Lesson learned, that thing got earmarked for guess what? A fucking shortage the next year.

I came in to the new house in Texas with a low down payment as I still hadn't closed on the old house. That meant I had to pay PMI and have an impound account until I could put more money down and recast the loan. Well, the loan is 2 months old and guess what? The impound account came up short. Looks like the cancellation of the PMI covered the majority of the shortage. But looking at the breakdown of why it was short I see that they were expecting to pay $0 for homeowner's insurance. This, in spite of the fact that I submitted a quote as part of the information needed to close escrow. My question is who the hell is paying $0 a year for homeowner's insurance? Where can I get in on this program? How are they so bad at this? I guess Monday I'll call to cancel the impound being that I can take a number and divide it by 12 without much trouble.

 

[Kachina26]

Well, six months later I got another shortage notice. So I got rid of my escrow impound account because banks can’t divide by 12. My mortgage company, Chase, sent me a check for the balance. I deposited it into my bank, also Chase, and they put a hold on the funds. WTF?!?! Do they not trust that the check they sent will clear?