Mortgage went up because not

Question

what is escrole or something that sounds similar to it? My mortgage is going up, the bank that I had my mortgage under went bankrupt. so the bank that is now covering us as a result says my mortgage will go up because I do not have enough escroll?? That's not the word, it's something similar, but what is it and what does it mean?

Answer 1

You mean equity. Equity is when your property is worth more than what your loan is for. If your home doesn't have any value they might not be able to do anything for you. I'm sorry to say but you might ended up loosing your home. Example if your loan is for 100,00 and your home value is 80,00 then you have no equity. Now, if the loan is 100,000 and your home is worth 120,000 then you have 20,000 equity.

Hope that helped to explain it.

Answer 2

Escrow

http://en.wikipedia.org/wiki/Escrow

It is the money your bank collects to pay your taxes and insurance.  They like to have enough in an account to prepay for one year on both.  Ask them for an accounting.

Answer 3

From wikipedia:

Escrow is a legal arrangement in which an asset (such as cash, real property or other tangible assets) is deposited into safekeeping (e.g., a bank account) under the trust of a neutral third party (escrow agent) pending satisfaction of contractual contingency or condition. Once the condition has been met, the escrow agent will deliver the asset to the party prescribed by the contract.

A mortgage lender will escrow money for you (required) when there is a stipulation that your insurance is to be done through them.

Then you home insurance payment will be paid to them. They put in into an account and then give it to the insurance company. Generally, the first year is paid directly.

You need to check with a lawyer who understands real estate - to ensure that it is a legitimate situation. They will also help you to see if there is another way you can handle it with your lender.

Answer 4

you mean you have shortage on your escrow account ( property tax & homeowners insurance). First check your tax bill and also check your insurance.The bank pay your tax instalment or insurance and now they want their money back from you- they want one lump sum or they will spreded this shortage over couple of months till you pay them and because something went up, your new payments will be higher then before.