Sorry if this is in the wrong place. I just signed up so I am still getting used to navigating here.
I need some advice. My husband and I bought our first house the end of August 08. It's an FHA 30 yr fixed @6%.
We chugged along for a year making all the payments. Then in December got a statement that our payment will go from $2040 to $2500. Called, the customer service Dep. hadn't a clue only that there must have been a miscalculation in the impound account. Told us to continue making the original payment amount. Ok, fine.
Now this year we have been told that our payment needs to be $2900 as their is a $7000 and change shortage in our Escrow account. Whaaat?
In researching all of this it appears that the underwriter forgot to add the Special Assessment Melaroos tax. The Escrow Officer calculated it properly, but apparently the underwriter missed in entirely, so it isn't on the loan docs at all. On the HUD 1 form it list the impound amount for property taxes and the line below has an option for Special Assessment, that was left blank.
The Mortgage company offered to absorb the shortage but our payment will still go up a few hundred dollars a month. We are on a fixed income as it is. 3 small children and I am a stay at home mom. We spoke with an attorney who only gave us the time of day because we were referred by a friend of his. He basically said that while yes there are probably TILA violations as well as RESPA, it's not worth it to go to court because, frankly, we dont' have the money, and basically our only option is to stop making payments, pocket the cash and get forclosed on.
Does this seem like we have a case. Anyone ever heard of this kind of thing happening? And who would be at fault?
I will try to get them to offer the deal to pay the shortage again, but I am afraid that we won't be able to maintain the monthly payment. Kids get sick, ect....
Is there any recourse for us. Apparently we should have caught the error because we had the information in the paper work about the Melaroos. This was our first time buying a house, how are we supposed to know the calculations were off? Is this a due diligence issue?
Any advice would be greatly appreciated...