Wells Fargo Home Mortgage, inc. an institution ran by ignorance stupidity disrespect and incompetence the business that doesn't give a dam Des Moines Iowa

This is a reply from the escrow question in NY.

Your monthly mortgage payment would be calculated first principal and interest then escrow and possibly mortgage insurance.

We will say that your P&I is $500.00 and you have a FIXED rate mortgage. This means that the amount of your payment... the P&I will not increase or decrease for the life of the loan.

Escrow. This will change at any time. Typically a mortgage company will run an analysis only once a year. As a customer you have the right to request an analysis of your escrow at any time. The mortgage company does have the right to deny your request as well. This should only occur however, if the payment change is so minimal it changes your payment less than 10%.

Calculating Escrow
If your taxes are $1000.00 a year then the mortgage company will devide that by 12 so that over the course of a year (12 months) they collect $1,000.00 from you. Mortgage companies do have the right to keep extra in your account incase of increases to ensure that the account does not go negative.

$1,000.00 devided by 12 = 83.33 per month

Now if your taxes last year were 1k and this year they increase to $1,200.00 the mortgage company will still pay the taxes even though you have not paid them for the full amount. In this case it creates what's called a shortage. Your payment will then increase for two reasons.

1st- now your mortgage company is going to devide 1200.00 by 12 so your payment now per month will go to $100.00 a month for taxes not just 83.33.

2nd- since your mortgage company paid out more than it has collected from you this has created a shortage. Best and simple explanation for this.

If you go to the store and you purchase a loaf of bread for $1.50 but you show up today and it's $2.00. The store owner says don't worry you can pay me back next time. So next week you go you owe him $2.50 for the next loaf.

This is how your shortage works. You won't just owe the mortgage company the $200.00 because your escrow balance decreased more than it should have possibly taking it negative and now since the collection amount has gone up you have to have more in there to cover for next year because the mortgage company was collecting less than what is due.

To compound this problem. Keep in mind your mortgage company will only re calculate/analyze your payment once a year. SO if your taxes are paid in March and they increase and your analysis isn't complelted until October they've paid out more than they've collected, they've continued to collect less than is needed and every month the lower amount is collected the more you will owe on your shortage.

On a side note... case I can hear the train coming. Your thinking well why don't they just run the analysis after they pay my taxes? Well do you want them to run it everytime your insurance changes too? So then your saying you want your payment to change 2 or three times a year?? NO, I didn't think so.

Plus mortgage companies are held to compliance and they are audited so they run analysis state by state so that they can help keep the time your on hold to ask why your payment went up down.

So although a lot of you think your mortgage company is only out to rob you. They do have your best interest in mind. I know that doesn't help you sleep at night and I admit everyone, even Wells makes mistakes. At least I can help answer a few questions.

Thanks for all of your time!
Jennifer

This is just an informative response to Jenny.

The original poster indicated she had files a Chapter '13' bankruptcy. This type of bankruptcy requires repayment of debt for a varying period of 1-4 years. A Chapter 13 comes into play when a person makes enough money to have their debt reduced, but not forgiven altogether. I believe you're thinking of a Chapter '7' which absolves one of ALL their debt immediately (though it can take up to 4 months from the filing date for the case to be discharged).

I made on line mortgage payments via internet banking with Bank Of America while I was living overseas for two years.

WF foreclosed on my house without telling me. My tenant told me over the phone. WF said I had not paid in four months.I had bank statements showing the payments. They eventually found a payment missing from two years earlier that they also never told me about and said they could foreclose because that missing payment put me at 28 days past due.

They have no obligation to inform you of a foreclosure.This can happen every month then right?

They very kindly let me pay $5,000 in costs,ruined my credit completely and refuse to answer any and all correspondence.

I sold my house.I showed my new bank and mortgage lender all paperwork relating to the started foreclosure and I got another house.
They suggested I sue,I don't have the money which is what WF rely upon as they screw up peoples lives. WF is NOW (6 months later)asking me for my ss#.As if......Now they can see what it's like to be ignored.

We also received a home mortgage through wells farg bank in 1998. Everything seemed to be fine. Our escrow account was covering everything, we presumed, until certain taxes that are paid from the escrow account seemed not to be paid on time. We began to get bills for school tax, property tax, village tax, etc. We contacted wells fargo. They said they would take care of it along with the late fees from our escrow account, which they did.

Our house insurance (not with wells fargo) had gone up quite a lot after we had made improvements to our home. Then, suddenly, our escrow balance began to be in the negative on a consistent monthly basis.

Then, because we have our mortgage payment directly taken from our checking account by
wells fargo, we were informed that our payment would be going up in 30 days over 170.00! Now I do not understand this as we have a fixed 30 year mortgage.

The rep. at wells fargo home mortgage said that did not matter since our escrow account was in the negative. It is not our responsibility to insure that our escrow account goes negative. Still don't quite understand it.

I truly sympathize with you on this. Everyone's mortgages are handled like stocks on Wall Street these days. Sold to the highest bidder. However, if it takes 4 years to get your bankruptcy discharged in your state, you are being screwed. You are considered discharged the minute the final paperwork is completed (after the court hearing) and it takes 7 - 10 years to get taken off our your credit report. Your bankruptcy lawyer is a crook.

I am a victim just like you and am in the middle of a lawsuit. Be wary of every attorney and any advice you receive. I, like you, believed a class action suit would be the way to go here. Through my research, I discovered what I believe to be compelling evidence not to make our type situations a class action. I will give you my reasons:
1. Class actions tend to be attorney centered and while attorneys should be compensated, this is about what happened to you. You lose alot of control of your case.

2. While our cases are very similar, they all have varying facts and situations, all which could confuse a jury.

3. I believe it would benefit WF if a class action were filed. Lender liability and fraud cases can carry substantial damages, and on principal I believe that for each life they try to ruin, they must face down that situation and pay accordingly.

I do believe, however, that we can all help each other by signing sworn affidavits and/or testifying for each other. Other than the fact that I was not in bankruptcy at the time, our cases are unbeleivably similar.
Good Luck!!