ROANOKE TIMES 

                         Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: THURSDAY, May 20, 1993                   TAG: 9305200109
SECTION: BUSINESS                    PAGE: B7   EDITION: METRO 
SOURCE: 
DATELINE:                                 LENGTH: Medium

ESCROW TOID IF YOU SUSPECT A RIP-OFF,

If you suspect a rip-off, you should know . . . The following states have laws requiring lenders to pay interest to mortgage holders on their escrow accounts: California, Connecticut, Iowa, Maine, Maryland, Massachusetts, Minnesota, New Hampshire, New York, Oregon, Rhode Island, Utah, Vermont and Wisconsin.

Mortgage holders can go to their lender and demand to see a summary of their mortgage escrow account, showing how much money they are putting in per month and how much is going out in insurance, tax and other payments.

Lenders should provide mortgage holders with annual summary of escrow account activity. These can be difficult for the layman to understand, but they contain important information that can be useful in settling disputes.

Banks should be making tax and insurance payments in full and on time, but sometimes they don't. Consumers should check on the timeliness of these payments.

Possible danger signs: Interest rates go down but your adjustable mortgage payments remain constant or rise; your bank requests an increase in monthly escrow payments to cover insurance and taxes, yet you know those charges have not increased; you make payments for years, but your loan balance is increasing; you pay off or refinance a mortgage and lender submits a payoff balance that seems too high; a new service company takes over your mortgage.

Getting help: Mortgage monitoring firms will, for a fee, examine your escrow account and pursue repayment of any overcharges. Fees can range from $75 to more than $300, depending on the complexity of the case. Some monitoring firms are: Consumer Loan Advocates, 800-767-2768; Loantech, 800-888-6781; LoanChek, 800-477-6166; and Mortgage Monitor, 800-548-8282. 


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