Comments on: Should You Agree to Escrow Accounts

By: K Wilson

K Wilson — Tue, 19 Oct 2010 21:30:01 +0000

I stumbled over your website because I want to opt out of escrow because I’m tired of dealing with my mortgage company (Chase Home Finance) to get them to handle it right. My insurance agent (State Farm) is not dealing with flood insurance directly anymore, so they switched us to the government agency NFIP. NFIP sent a bill giving us an option of 2 different levels of coverage. My mortgage company wasted no time in paying the higher option, when it is not what I want, nor is it necessary. First, when I called them they said I needed to call my agent. My agent then said that she can’t get money back that a different corporation paid. So I called Chase back and now they said I am the one who needs to call NFIP to fix it. I inquired about opting out of escrow, and Chase says that I can’t unless I pay off the mortgage, or re-finance. ARRRRRRGH!

And not to mention when we were first required to pay property taxes, home-owner’s insurance, and flood insurance, I was the one who had to make all the phone calls to verify that Chase had the bill and that it would get paid on time. I would much rather pay my own bills on time than have to deal with making some other agency pay my bills on time. And I have more interest in keeping my house insured in case of damage because it is where I live. Chase doesn’t care, except they’ll lose some money. Yeah, they don’t want to lose money, but they could just write it off of come after me for the money, so in the end I’ll be the one who loses out, not Chase!

By: Mitchell

Mitchell — Mon, 13 Sep 2010 05:20:02 +0000

Good for you and your friend! Sometimes escrows are money not-well-spent and sometimes these fees can make you feel outrageous. Beware or less “protection” tho. These things are there for a reason and the industry has thrived.

By: Money Hacks Carnival #55 – Thank You Edition

Money Hacks Carnival #55 – Thank You Edition — Mon, 21 Jun 2010 05:55:30 +0000

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By: Santos

Santos — Fri, 13 Mar 2009 15:43:58 +0000

I opted out of escrow and when the lender said there was a fee for doing so (I think it was something like $250 or $300) I said flatly I was not paying them a dime and that I was offended by what I considered blackmail. I said that if they did not waive the fee I would simply walk from signing (This happened during the close which is when I found out for the first time about this fee).

They did waive the fee. I guess they saw in my eyes that I was not bluffing; I was completely ready to walk (Maybe a boneheaded proudful move but I was offended.)

So in my particular case I have made an average of about $100 a year by not escrowing. Of course, if you pay the fee you probably lose money, not to mention you have to handle the payments for taxes and home insurance yourself.