Mortgage Service Company now asking for Escrow Payments???

[yaseling]

My loan servicing company is Wilshire Credit Corporation, my initial mortgage (2006) did not require me to escrow my property taxes; and insurance and the loan modification agreement I entered into with Wilshire last year also specifies that I am to continue paying my taxes and insurance on my own. However, I recently received an Escrow Account Disclosure Statement. In this statement they advised me that starting August 1st they have added $441.21 to my payments for escrowing of my taxes and insurance. I went online and next month's payment is already reflecting the increase. Can they force me to escrow when I have never been required to do so? I have currently requested to participate in the new Home Affordability Program and they did advise me that once I am entered into said program and my loan is modified I will have to escrow my taxes and insurance, and I understand that because the new program requires that. However, I have not yet even began to discuss the terms of the new program with them, they have only received my request to participate but I do not have a response from them yet. I believe we are still binded by last year's loan modification agreement that did not require me to escrow. Until I am approved for the new program they cannot force me to escrow, is this right? Any suggestions or advise?

[Evan Bedard]

Hi vaseling,

However, I have not yet even began to discuss the terms of the new program with them, they have only received my request to participate but I do not have a response from them yet. I believe we are still binded by last year's loan modification agreement that did not require me to escrow. Until I am approved for the new program they cannot force me to escrow, is this right? Any suggestions or advise?

From my experience dealing with CW they would add escrow; taxes and insurance to your loan once it is modified. Not sure why Wilshire would add this to your loan before it was modified?

[yaseling]

thanks for your reply...I am not sure what is going on either. I have emailed Wilshire asking them to communicate with me and let me know what is going on...like I said, I did modify my loan last year but got specific approval to not escrow and this is detailed in the modification agreement from last year. However, last year's modification was a crapy modification similar to the modifications initially offered by lenders before things got even worse, so now I have requested to participate in the new program and then I suddenly get an escrow letter, my loan has not been modified again yet so I do not know what is going on...they may just be preparing my file for the modification and therefore sending me the escrow figures but I have no confirmation of this...I am just guessing here....I'll keep loansafe posted but it would be great to hear from someone who may know why this is happening...thanks!