ABN AMRO Property Tax/Ecsrow Rip Off Troy Michigan

Beware that ABN AMRO and other lenders have a new sneaky tactic to rip you off. When you close on your loan, your broker and closing atty project how much you need to put in your escrow account up front. They use your property tax/tax due date (as well as hazard insurance premium/premium due date) to project this. They divide by the number of months until the cost will be paid out of your accrued escrow and that's how they come up with what you need to pay monthly, in addition to your principal/interest.PROBLEM IS.....ABN AMRO has moved the tax payment date UP by one month.

For example, property taxes where I live are usually paid in August, but ABN AMRO "says" they are going to pay them in July. In 15 years of paying various lenders, none have EVER paid taxes in July.

My first call to them, puzzled by the 20% increase in what I pay to escrow, they said, "You didn't fund enough up front". So I of course called my mort broker to ask why they miscalculated my escrow. He was the one who figured out they moved the pmt from August to July. He added this was a new sneaky tactic that mortgage lenders were doing for thier own short term gain. They earn interest on the excess escrow, but are not required to pay the taxes in July, even though they collect the escrow for it.

When I called ABN AMRO to request my taxes paid in August (when due) and have my escrow set back to it's original place they refused - RIP OFF!

Atlanta
Atlanta, Georgia
U.S.A.