Chase Mortgage - Chase Mortgage Escrow

Posted on Wednesday, July 1st, 2009 at 2:41pm CDT by a5a5009d

Company: Chase Mortgage

Location: US

Category: Other

I'm trying to have my mortgage escrow account released so that I can pay the property taxes and homeowners insurance on my own. Our loan to value ratio is about 70%, and we have no mortgage interest. I sent a letter to Chase explaining that I wanted the escrow account closed and the funds returned to me. I told them that we've always been good customers who paid in full on time. I also noted that I would provide any documentation that they needed in order for them to feel safe about us taking on that responsibility.

I received a letter back from Chase about two weeks later saying that the documents that I signed at closing stated that we would keep the escrow account for the term of the loan. I knew that this was 100% false. I looked up my records, and sure enough, this is not the case.

I called my local branch and spoke with a loan officer. He made some calls and found out 1) that we never entered into an agreement of escrow for the term of the loan, and 2) that it was now Chase's policy to not release any escrow funds period. End of story. Of course they cannot provide this in writing.

I've written an email complaint to my Senator, who is on the finance and banking committees. I feel that this is an unfair practice, as they are keeping a buffer on top of what they need to pay for taxes and insurance, which while legal, they are keeping all of the interest. It's my money and it's my obligations. Most people don't know that they can get out of the escrow account. It usually only takes a letter from the owner, and if they meet the requirements, a check is sent. Why not make one customer happy? Instead, I'm extremely upset. They are getting a free loan off of me, and there's nothing that I can do about it. Well, I'm not going to settle for that.

I just want everyone to know what Chase is saying. I hope to be able to refinance if the rates go back down and never deal with them again.


5 Comments

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032f60fd, 2010-12-08, 06:50PM CST

I have had the same results with chase.I recently recieved a statement in which my escrow was going to nearly double this year.I contacted my local tax assesors office and they said my taxes havent been paid for from chase and didnt even realize that there was a house built on the taxable property.after contacting chase i have had the same answers.I am presently looking for representation.

acde72bb, 2011-05-12, 12:23AM CDT

I am running into a similar situation. I want to handle my tax and insurance myself but Chase told me I am not allowed to do that by New Jersey law. But I asked a mortgage expert who told me I can handle it myself. As a matter of fact, he handles his own tax and insurance. My question is what I should do now. Any help is appreciated.

293423a6, 2012-01-27, 08:02AM CST

I'm not a business or an expert, however, most mortgage companies have the escrow built into their contracts. So, once you finance with them, it is their requirement that you have escrow setup with them. This doesn't have anything to do with state law. It seems contractual. I would assume the solution would be to refinance with a bank that does not require you to have an escrow account with them.

c9a577dc, 2013-08-11, 06:03PM CDT

I have a similar complaint with Chase. They sent notice of escrow shortage... I sent them the shortage difference so my monthly payment would not go up. Chase posted my escrow payment with my regular payment... my monthly payment went up and better yet... my escrow was in the black because my homeowners insurance cost went down by $200 a month. They were notified by Homeowners that the cost would go down... but notified ME that it would go up..They had an interesting play on the calendar. My mortgage went up, they collected over $200 mortgage shortage and scarfed up the reduced homeowners ins cost.... not bad for a bank with an already bad rep. Calls to the bank have resulted in promises of a reduction in monthly mortgage payment AND a refund of $$.. however, just received my bill.. Increased Mortgage Payment still there... It will take 10-12 days to process. and another 10 -12 days to send me a check... GEE ... they take my money online and it only takes a couple of minutes... Ahhhh the banking industry... nothing changes

ben c., 2014-11-10, 03:14PM CST

Long story short, my escrows account was short by almost $3700 in June of 2013 due to a mistake made by Chase. I agreed to have my mortgage payment go up from $1300 to $1600 a month only to find out that now in November of 2014 that my escrows account is short by $2000 and my taxes have only gone up approximately $200 in the last couple of years. I have a contract with them to provide a service (escrows account) and they continuously fail at providing a creditable answer on how it happened and how to fix it. Has anyone had this problem too? Also can anyone help in this matter?

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