After closing on our mortgage in January, our closing documents and truth-in-lending all stated a mortgage payment of $2100.00/month. We received our first mortgage bill and the amount billed was $2600.00. We did not agree to paying home owners' insurance and property taxes in our monthly mortgage. We did not sign the documents required to do so either. What are our legal rights when the lender is saying they will not remove the additional amounts as documented and agreed upon at signing?
Look at your mortgage documents. Most likely they allow for escrows. Your payment is often broken down into four components: Principal, Interest, Taxes and Insurance, PITI. This should have been disclosed at closing and you should have received escrow statements with a projection of what your PITI payment was to be, how much was to be collected and when they scheduled payment of the taxes and insurance. If you have none of these, you should first call your lender and tell him that you intended paying these yourself when they are due, and ask where your contract with them allows them to collect these funds.
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Look at your mortgage documents. Most likely they allow for escrows. Your payment is often broken down into four components: Principal, Interest, Taxes and Insurance, PITI. This should have been disclosed at closing and you should have received escrow statements with a projection of what your PITI payment was to be, how much was to be collected and when they scheduled payment of the taxes and insurance. If you have none of these, you should first call your lender and tell him that you intended paying these yourself when they are due, and ask where your contract with them allows them to collect these funds.
