Escrow was messed up by my lender, now it is my problem?

Not sure on the numbers you are discussing, but $440/month seems like a lot for an insurance miscalculation. If they did make a mistake, it is still money you owe and would have to pay at some point. I would see if your lender has any way of cutting that down at all, or, as mentioned, figure a way to come up with or borrow the lump sum that maybe is easier to pay back? I'm happy to help with the financing or just give you advice. So if you need more information, or a competing rate quote you can go to my web page, call or email. and use my live support button to discuss or get advice on anything at all with me. Web Address is: http://www.loansfromrob.com/quote/ Email is rhanson@gladewaternational.com and direct phone is 240-752-7549. Good Luck -- Rob Hanson

Somewhere buried in the small print of the paperwork you signed when you initiated your loan, you agreed to annual reviews for impounds, and how they would deal with deficits.. unfortunately, the shortage has to be paid, and it has to be paid by you.. I know for certain, that if this is an investment property, your lender will not do anything for you, however if it's your primary residence, they might be able to modify your loan to allow for a longer payback.. Also, depending on your interest rate, you might be able to refinance and get the shortages paid by the refinance.. in either case, you should start with your existing lender.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. William J. Acres, Lender411's number ONE lender in Arizona. 480-287-5714 WilliamAcres.com

You need to talk to the company directly and ask them what the options are. Its also possible that if by shopping around and obtaining new insurance coverage at a lower rate it could offset some of the increase but you'd have to pay the new company and cancel coverage with the old one requesting a refund of the premium for the remainder of the year. In general, it is a good idea to shop around for insurance about every 2 years, especially if the cost increases significantly from one year to the next. Good luck!

PS> I'm not aware of any way to eliminate the escrow on a loan without paying it off. You should be able to give them a lump sum to catch up the escrow balance rather than an increase to your monthly payment.

Wow, that is a big jump. And $440 x 12 months is $5280, which sounds to me like "forced insurance", placed by the lender. Please contact me, Dave Metsker, at primefinancial@frontier.com, for help, and an Oregon insurance company that will no doubt lower your premium dramatically.