Citimortgage
Escrow Increased $50 a Month After Mortgage Loan Was Sold

In November I bought a house and got a mortgage through a local company that 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 sold 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 first-year escrow analysis, my monthly payment went down and I got a refund check.)

I got my escrow analysis, and not only will I not be 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 per 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 it will always 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 not care less, and I, as a consumer, have 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!

Company: Citimortgage
Country: USA
State: Missouri
City: St. Louis
Address: PO Box 790011
Phone: 8002837918

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