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Question
My escrow was short 1111.00 they said I will have to pay this by april 1st or pay 150.00 more on my note for 12 months. I am aware that every year taxes and insurance may change some, but never in the past 8 years have I paid a difference of 150.00 Is there something wrong or what can I do to prevent this again. It's a investment property. My note is 661.00 now I get a rental payment of 850.00 now, My note is going to 809.00 which means I will now only make 40.00 a month on my investment property. please help
Either property evaluations have skyrocked in your area or referendums have been passed for schools, libraries, etc in your area or the mortgage company goofed. This happened to me once on a house we had up in Kenosha, WI. My brother and I bought it as a VA report, did some cosmetics and sold it on contract. For about 5 years the tax escrow went up very little then one year the mortgage company informed us of their error of not raising properly for several years. Our payment went up $200 a month just for taxes and there was nothing we could do but pass it on to our buyer who eventually defaulted. You might check with your tax assessor and see why the sudden increase and if it turns out the mortgage company goofed, you might contact an attorney, we did not try that approach, but maybe we should have. Good Luck, I know it is a tough situation you face.
Larry
http://www.americanunsecured.com/index.lasso?AID=041190&BID=4133
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This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here
Answers by Expert:
Larry Potter
Expertise
We started investing in August of 1984 with a two unit after getting half way thru Robert Allen`s book Nothing Down. In early 1985 I attended a Wade Cook seminar in Chicago and started using his methods so that in May of 1987 when I lost my job of 22 years, I decided to go at it full time and have not worked for anybody since. We`re now at the point of buying real estate notes of all types, also notes on businesses and mobile homes located anywhere, so if anybody you know has a note they would like to sell, I would be more than happy to pay you a finder`s fee of $250 if I buy their note. You may give them my e-mail address, fax and/or phone number. We`ll buy the whole note or just enough payments to get you the cash you need now. We can also help you structure your notes so they are more attractive to our national funders. Our website is at: http://www.agilefunding.com Sincerely, Larry Potter, Pres. P.S. For any referrals, please tell them to mention your name so I will know it was from you. LP2715@aol.com 847-872-4047 847-872-2681 FAX Mortgages and Other Notes Residential Notes - Notes that are created by the sale of residential properties, including houses, townhouses, condominiums, and one-to-four family rental units Commercial Notes - Notes originating with the sale of any type of commercial (business) property including office, retail, apartment (more than one-to-four family units) and industrial properties. Vacant Land Notes - Notes on developed or undeveloped land, or land not designated as a specific use property such as farm land or waste storage. This category does not include land that has been improved for development and building. Why do individuals sell their Business and Mortgage Notes (either full or partial sale of future payments)? 1. Access to Cash People need or want access to their cash. Sometimes they have a serious need to pay off credit cards, finance long-term medical care, or to settle a divorce. Other times, they simply have a desire to purchase a dream home, take a vacation, buy a new car or boat, finance a wedding, or start a business, for example. In some cases, people want access to their cash just for peace of mind. They no longer want to worry about liquidity issues, collection hassles, foreclosures or the financial strength of the person who owes the debt. 2. Interest of Yield People will sell their income streams - discounted from face value - because they know that with cash in hand today, they can start earning interest or yield. Interest or yield is what gives us the ability to invest money this year and turn it into an even larger amount of money next year. They typically have a number of options - either selling all future payments they receive or selling only enough payments to meet their current income needs. 3. Inflation Inflation eats away at the future value or "buying power" of money. You can buy more with a dollar today than you will be able to five, ten, or twenty years from now. People sell their income streams because they realize that over time, the payments they receive will drop in real value. Small payments over a long period of time have less buying power. A Lump Sum of cash today can provide you with financial stability and flexibility. Sell all or only a portion of your privately held note. You may even sell future payments today while still receiving current payments. We can facilitate the sale of existing private mortgage notes, portfolios of residential or commercial mortgage notes, or can arrange point of sale funding, also called table funding or simultaneous closing. http://www.agilefunding.com
Experience
19 years
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