Wednesday, August 10, 2011

My new bank escrowed for taxes but didn't pay my Fall '10 property tax installment?

I had a 7-year old loan that I refinanced in September 2010. Tax and insurance escrow was required by both the previous mortgage company and the new one. One-half of the annual property taxes are due and payable in May and November each year. The previous mortgage company paid my Spring 2010 installment. I closed on my new mortage around 9/30/10 so the new mortgage company should have paid the Fall installment. I just reviewed my 1098 Mortgage Interest statement from the new bank and found that although they've been escrowing for taxes they did not pay the November installment - almost $900. I tried to contact them via phone and email today but we're having a blizzard in this area so I've received no reply yet. I want to know if the bank is obligated to step up to the plate and pay not only the tax from my escrow, but take care of any late fees on their own dime. And shouldn't they owe me for any tax refund I should have received for the missing half of my property tax deduction?!

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