I got a letter from my mortgage servicing company the other day stating my mortgage payment was going up $400/month!
I started looking at the letter and its going up for two reasons. First, all the houses in the area have recovered in price and my appraised value shot back up to the max prop 13 limit. In reality this was only about $75/month and expected. No problem there.
Second, they tell me they WAY, WAY under estimated my escrow payment last year and now I have to make up the shortfall. I probably should have caught their mistake last year but after refinancing in 2012 and getting a refund from my escrow account last January, I figured they had it pretty close. Now that I look back, I realize they were way wrong.
They estimated my escrow account payment should be $198/month based on who knows what. My property takes have NEVER been below $3000 so right there they were way off and that didn't include insurance.
Is this some sort of scam I'm not seeing? They are not charging interest on the shortfall and have spaced out the repayment over 36 months but this is bullcrap. This isn't a $10 or $20 difference in payment, its 33%+ more!
Thoughts?