Can a mortgage lender demand $9,000 shortage in escrow payments over 12 months if it was their fault?
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Can a mortgage lender demand $9,000 shortage in escrow payments over 12 months if it was their fault?
Can it be spread out over a longer period of time?
Asked on September 1, 2012 under Real Estate Law, Texas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Even if it was their "fault"--i.e. they forgot to charge or bill the full amount--if the charges are lawful--that is, the borrower legitimately owes them--then the lender can require they be paid all at once; that is, they can require that the entire shortfall be made up immediately. It is voluntary on their part to accept payment over time; therefore, you cannot force them to give you more time than a year, though you an certainly ask for it and see if they will agree.
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