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+--- Thread: Hawaii property tax exemption and Wells Fargo (/showthread.php?tid=12366)
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Hawaii property tax exemption and Wells Fargo - terracore - 08-14-2013
I applied through a local mortgage broker specifically because I didn't want to deal with Evil Corporate Banks like Wells Fargo. Unfortunately, within 30 days of getting my mortgage, it was sold to Wells Fargo against my will. While there is nothing I can do about that, I was pro-active in catching and calling them on their Evil Ways.
THE PROBLEM? The Hawaii residence property tax exemption on the house we bought last year just kicked in during this tax cycle so I checked my Wells Fargo escrow to see how they planned to screw me. Sure enough, rather than decreasing my escrow payment, they INCREASED IT a few days before the "new" property tax cycle. So rather than decreasing the amount that was supposed to go into escrow, they jacked it up. I'm sure they would have enjoyed using my money for a full year before sending me the "overage" next July without paying me any interest.
ANALYSIS? There was absolutely no reason for them to increase my escrow payment other than the law allows them to go above and beyond the expected escrow payment by a certain % in order to give them a "buffer" against unexpected increases the first part of the following year. So they took FULL liberty with that, even though the actual obligations went down substantially.
THE RESULT? I'm getting a check in the mail for an existing overage, and beginning next month my mortgage payment goes down.
THE LESSON? Either skip the escrow and pay the insurance/property tax yourself (if you have good savings habits) or be like me and WATCH THEM LIKE A HAWK.
WHAT ELSE? Some of you may have seen my other post where a local title company didn't use the proceeds they got to pay due property taxes and I didn't find out until I got a past-due notice from the county. They made it right by paying it plus the late fee and penalty. Again the LESSON is, assume the worst and ask questions!
RE: Hawaii property tax exemption and Wells Fargo - Kapohocat - 08-14-2013
Since you stuck with your issue and figured it out, maybe you can offer advice on mine...
Before my mom passed away she told numerous people that she had mortgage insurance on her home. (She had just purchased it).
Before she died, we called to see what was needed by the bank so if she had to do something else she could do it beforehand.... Bank says yes it exists just send in DC when the time comes and it is all taken care of. Not believing this, my brother called also and got the same response. Got the same answer a month after death.
We send in DC, and all of a sudden it does not exist. Cant find any paperwork on it anywhere. Have gone through everything I can find.
Any ideas?
(and this is a local hawaii bank not mainland bank).
RE: Hawaii property tax exemption and Wells Fargo - eigoya - 08-14-2013
Mortgage insurance is a fee the lender collects if you have not put down a large enough deposit. The exact amount varies according to your credit risk. It is not insurance which pays out upon death. Having just finished escrow (which my French friend said means to rob) this is depressing! We need home loans through crowdsourcing or some such.....
RE: Hawaii property tax exemption and Wells Fargo - ericlp - 08-14-2013
that sucks that they can just "sell" your mortgage to another institute. I am super happy I don't have a bank loan or credit card debt and I pay everything including my taxes/water/power in year or so in advanced so I don't have to write checks for this or that.
I think one could put a clause with the title company that they can not pass your loan off to someone else for X amount of years. I can't stand making compound interest and all the fee's they charge.
RE: Hawaii property tax exemption and Wells Fargo - terracore - 08-15-2013
There are two types of mortgage insurance. The most common type is "private mortgage insurance", a monthly fee charged to the borrower when they do not put 20% down. The "insurance" is really just a penalty fee and protects nobody but the bank. It is required on government backed loans (HUD, USDA, etc) which usually have a 3.5% or so down payment.
The second type is offered by life insurance companies which pays off the mortgage should the insured die. If your mom had this type, then there would be a benefit paid out to the beneficiary. Most people don't get this type of insurance because all it really is, is a term life insurance policy with a benefit amount that goes down with each mortgage payment that is made.
RE: Hawaii property tax exemption and Wells Fargo - terracore - 08-15-2013
quote:
Originally posted by dragon2k
Wow. Just wow. It's always been open season on the little guy but these days it just seems more visceral, more blatant. Good on you for keeping them honest!
The suspicious side of me thinks that many people don't check these things out. I wonder how many of them never get their checks for overpaying their escrow.
RE: Hawaii property tax exemption and Wells Fargo - Kapohocat - 08-15-2013
quote:
Originally posted by terracore...
The second type is offered by life insurance companies which pays off the mortgage should the insured die. If your mom had this type, then there would be a benefit paid out to the beneficiary. Most people don't get this type of insurance because all it really is, is a term life insurance policy with a benefit amount that goes down with each mortgage payment that is made.
This is the type she said she had. This is also the type the bank said she had the 1st two times we called.
She was 76 when she bought it and knew she had CHF.
The original conversation came up because we both said to her "What if something happens and we'll be making your payment?" (because we had more than enough room for her to live with us) to which she answered point blank "... (using my given name which meant business) Catherine, if I die, the insurance will pay it off..." and she told numerous people this but she neglected to mention to anyone the name of the ins company.
And she paid enough down payment that she did not need mortgage insurance because the loan was only about 60%.
At this point we have a good tenant and the loan payment is stable but it would be nice to have what my mom thought she paid for (if she did get it). But things can change, tenant could decide to move, something could go wrong with house, etc.
RE: Hawaii property tax exemption and Wells Fargo - unknownjulie - 08-15-2013
My experience with Wells Fargo goes like this. Large amounts taken out for property tax via eschrow account. Then, next year, amount reduced drastically. Then next year after that, a shortage showed, so drastic increase in house payment. Yes, I was always "refunded my extra money" after the end of the fiscal year, and was not allowed to "roll-it-over". This went on for 5 yrs. One year being overpaid and being sent a refund against my will, then next year being undercharged and showing a shortage. They never did get it right! GL
RE: Hawaii property tax exemption and Wells Fargo - HereOnThePrimalEdge - 08-15-2013
quote:Is it possible she meant her life insurance would pay off the mortgage on her property? If she wasn't completely clear about which company she had her policy with, maybe the purpose of the mortgage insurance was confused with her intentions for the proceeds of her life insurance?
Originally posted by Kapohocat
if I die, the insurance will pay it off..."
RE: Hawaii property tax exemption and Wells Fargo - rprr - 08-15-2013
quote:Did she pay the life insurance premiums as part of the monthly mortgage payment? If so, maybe you can look for older mortgage statements.
Originally posted by Kapohocat
quote:
Originally posted by terracore...
The second type is offered by life insurance companies which pays off the mortgage should the insured die. If your mom had this type, then there would be a benefit paid out to the beneficiary. Most people don't get this type of insurance because all it really is, is a term life insurance policy with a benefit amount that goes down with each mortgage payment that is made.
This is the type she said she had. This is also the type the bank said she had the 1st two times we called.
She was 76 when she bought it and knew she had CHF.
The original conversation came up because we both said to her "What if something happens and we'll be making your payment?" (because we had more than enough room for her to live with us) to which she answered point blank "... (using my given name which meant business) Catherine, if I die, the insurance will pay it off..." and she told numerous people this but she neglected to mention to anyone the name of the ins company.
And she paid enough down payment that she did not need mortgage insurance because the loan was only about 60%.
At this point we have a good tenant and the loan payment is stable but it would be nice to have what my mom thought she paid for (if she did get it). But things can change, tenant could decide to move, something could go wrong with house, etc.