Mortgage Payment Increase

UPDATED: Sep 30, 2022

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Mortgage Payment Increase

We closed on a house a month ago. After making the first payment, our mortgage company says our monthly payment is to increase by 200 because they failed to research and add all taxes for the escrow account. What can we do?

Asked on April 4, 2017 under Real Estate Law, North Carolina


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

If they are right about the taxes (and verify this yourself) in that there are additional taxes owed on or for the property, then they are entitled to collect them for the escrow acccount. Even if they missed the taxes initially, they are still due and owing, and you still have to pay them. If the money wasn't being escrowed, you'd be paying the extra taxes directly to the government. They key thing for you is to verify that they number or amount is correct--they can't overcharge you and you could fight that, but they can pass on the correct taxes.

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.

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