Wells Fargo Home Mortgage
Escrow Shortage Raises Mortgage Payment 20 Percent After Eight Months

I purchased my first home (condo) with a loan from Wells Fargo and closed on December 26. (Loan amt. $313,500.8.95% on a 2/30 (40)-I have paid ALL of my payments on time without issue. Only eight months later (yesterday) I got a notice of a new, increased payment due to "the projected escrow balance" having a shortage. My payment is scheduled to increase from $2,461.64 to $2,953.00. THAT'S 20%! This makes no sense; my taxes are nearly the same for this year as for last. My escrow account history shows that Wells Fargo has been paying money into my escrow account at a rate of only $56.00 a month. That is a rate of less than $700 a year, but my actual property taxes are (looking at my tax bill right now) $3,230.47. Wells Fargo says there is a projected shortage of $3,327.62. However, the projected increase in my monthly payment amounts to almost $6,000.00 per year!?! As if this was not ludicrous enough, they further state that if I opt to pay that shortage in full, My monthly payment will STILL increase by more than $200.00. Today being Sunday, Wells Fargo is closed to discuss the matter, but after spending some time on this site and others, and reading the innumerable horror stories from other consumers, I am ready to pursue immediate legal assistance. I will speak to both Wells Fargo and my attorney tomorrow. This is insane. I gladly welcome any comment by a Wells Fargo employee regarding this.

Company: Wells Fargo Home Mortgage
Country: USA
State: Iowa
City: Des Moines
Address: PO BOX 14547
Phone: 8003400473

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