In November I bought a house and got a mortgage thru a local company who I knew would sell it and they did. To Ohio Savings Bank. No problems with them, and we had to have escrow set up with the mortgage.in August they sell our loan to Citimortgage. I called to find out about an escrow analysis and they told me one would be forthcoming.
(side note: I have owned 4 other houses and in every one of them, after the 1st year escrow analysis, my monthly payment went down and I got a refund check.)
I got my escrow analysis and not only will I be not getting a refund, they increased my escrow $50.00 per month! They estimated a property tax/insurance increase of 1.5% (which amounts to a whopping $40.00/year). They use their 'bank' formula to say you must always have at least two months of reserves in escrow. Well, after paying a $1200 tax payment, it may drop below that, but always will pick back up.
At the end of the year, they are holding over $1100.00 of my money (collecting interest of course).
They had no explanation as to why my escrow was fine with the previous bank while theirs has increased so much other than 'that's the way we always do it'.
This company could care less, and me as a consumer has no recourse other than to refinance (which would be no guarantee they wouldn't buy that loan as well!).
Stay away from citimortgage if you can!!
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