We refinanced our house in 3-2003...$630 was part of our closing costs, and paid in good faith to originate an Escrow account, specifically itemized in Section #1000-1008 as reserves deposited with Bank-A for Hazard Insurance, Property Taxes and Flood Insurance.

Within 6 months, our mortgage was sold to Bank-B. In 3/2004, I received Bank-B Escrow Account History which stated there was a $660 escrow shortage after disbursing Hazard Insurance and County Tax payments in 11/03. This supposedly shortage now reflects a remarkably increased monthly mortgage-&-escrow payment for the next year. Because we've never-ever had such a large "escrow shortage" since being homeowners, I reviewed Closing Settlement & Escrow account summaries from Banks A&B...& angrily noted that our $630 closing costs to originate an escrow account was NEVER included in Bank-A Escrow Account, consequently not included in Bank-B's Escrow History.

Immediately, I contacted original Bank-A...& was informed that the $630 was noted as "closing interest", not an escrow account deposit...that they could no longer be of further assistance to me...but to instead contact current Bank-B. Bank-B supervisor instructed me to fax Closing Section #1000-1008 with letter-of-explanation and the matter would be researched.

Since disputing the escrow shortage, I am not paying the recommended increased monthly payment. Initially,Bank-B agreed that I did not have to pay the increased monthly payment while $630 discrepancy is under investigation, but now they are starting to verbally press for the higher mortgage payment...intended to cover escrow shortage...which is not really a shortage at all, but a mis-appropriation of funds.

It has been 4 months since Escrow Dispute filed...still nothing has been resolved by Bank-B...just continually having to repeat the chain-of-events on monthly follow-up calls...never the same supervisor, who states it's not possible to be placed in direct contact with the actual investigative Bank-B personnel.

I'm very discouraged, frustrated...Bank-A is still wrongly in possession of $630.
What are my chances of the $630 ever reaching my Escrow Account now with Bank-B?


All input would be most appreciated...Geena