Can a bank legally increase your mortgage payments because of a tax they neglected to include in the original mortgage?

UPDATED: Jun 26, 2012

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can a bank legally increase your mortgage payments because of a tax they neglected to include in the original mortgage?

I purchased a home 2 years ag. My original mortgage payment was approximately $800/month. I received a letter 7 months ago titled “Escrow Account Review” that basically increased my mortgage payments to $1000/month. From what I can gather they did not include city taxes in the mortgage and now need to recoup that money. I can afford the $800/month. I cannot afford $1000. Do I have any legal recourse?

Asked on June 26, 2012 under Real Estate Law, Pennsylvania


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

Whether or not the lender on your loan can increase your mortgage payments on your home because of a tax that was neglected to be included in the original mortgage depends upon what the original mortgage says. The mortgage for all intents and purposes is a contract between you and the lender and its terms control the obligations owed you by the lender and vice versa.

I suggest that you carefully read your mortgage to get the answer to your question. After doing so, you should consult with a real estate attorney as to any further questions or issues you may have as to your situation and what recourse you may have.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption