Can a bank legally increase your mortgage payments because of a tax they neglected to include in the original mortgage?
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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
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 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.
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