Trial Payments and Escrow

[PhildVegas]

Quick question: since my trial payments are being held in a special fund with none of the monies being directed into my escrow account, what happens when taxes come due on 12/1 (the due date of my final trial payment)? The escrow fund is short of the monies needed to make the payment.

[MyHAMP]

Originally Posted by PhildVegas

Quick question: since my trial payments are being held in a special fund with none of the monies being directed into my escrow account, what happens when taxes come due on 12/1 (the due date of my final trial payment)? The escrow fund is short of the monies needed to make the payment.

Is it HAMP? If so, your payments in that fund will be applied to your account once the fund reaches or exceeds a regular monthly payment under your current mortgage.

[davephx]

I believe there are held in suspense until final mod is approved or denied unless I am remembering wrong...which my now is very possible that I am going insane.

If escrow is set up I believe the servicer has to advance the funds. If you have an escrow shortage when the final mod is done it seems you have to come up with the shortage at that point but not totally sure.

[PhildVegas]

It is MHA; dave, you are correct that these funds are held in a separate fund until mod is final. We've always had an escrow and the new modified payment includes PITA. So, it makes sense that they would advance the funds to pay the taxes, then reimburse themselves from the funds set aside from the trial payments.

Thanks for your input!

[MyHAMP]

Originally Posted by PhildVegas

It is MHA; dave, you are correct that these funds are held in a separate fund until mod is final. We've always had an escrow and the new modified payment includes PITA. So, it makes sense that they would advance the funds to pay the taxes, then reimburse themselves from the funds set aside from the trial payments.

Thanks for your input!

Our HAMP trial payments were/are also held on a suspense-account - BUT only until that account reached a balance which covered a regular payment. This is also a guideline under HAMP.

[davephx]

Maybe servicers are handling differently. I'm over normal payment in 3 trails but has not been applied.

[PhildVegas]

Hmmmmm. Interesting, MyHAMP. The two payments I've made more than cover one month's payment, and the second one posted 2 1/2 weeks ago. They remain in the non-interest bearing account that is described in my MHA Modificaiton Trial Agreement. There is language in this document that states: The servicer will hold the payments...until they total an amount that is enough to pay my oldest delinquent monthy payment on my loan in full. I have been/am current on my account. Perhaps that is the difference?

Thanks for your guidance!

[MyHAMP]

Originally Posted by PhildVegas

Hmmmmm. Interesting, MyHAMP. The two payments I've made more than cover one month's payment, and the second one posted 2 1/2 weeks ago. They remain in the non-interest bearing account that is described in my MHA Modificaiton Trial Agreement. There is language in this document that states: The servicer will hold the payments...until they total an amount that is enough to pay my oldest delinquent monthy payment on my loan in full. I have been/am current on my account. Perhaps that is the difference?

Thanks for your guidance!

You're welcome, PhildVegas!

The bold part was what I meant. And yes, If you are current, it might take longer than the 3 or 4 trial payments to actually fall behind "enough" so that such delinquency would be equal to or greater than a regular payment.

We are far behind on our mortgage so that might explain the difference.

[nell79]

They held my payments in suspense until I had enough for the regular payment, then posted it to my account, but didn't take out for escrow. We were current at the time we got accepted for the HAMP trial mod.

Our taxes are due Nov 30, so we shall see what happens. They tell me it will all be worked out and not to worry about it.