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Massive Escrow Shortage = High Monthly Mortgage Increase. Is This Normal For BK13?

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    Massive Escrow Shortage = High Monthly Mortgage Increase. Is This Normal For BK13?

    As I feared and predicted, we have a massive, over $2000+ escrow shortage. Therefore, with out paying $1800+ out of pocket before may 1, our mortgage would increase by $221 monthly. However unless a sudden emergency occurs, we will be able to cobble together the necessary funds to allow our mortgage to only increase by $67 per month ($2300+, nearly $2400 with the perpetual $75 solar panel lease fee!) Supposedly, increased home insurance charges because of numerous nearby hail damage roof replacements, a 2019 tax assessor mistake and increased home value,has caused this massive mortgage increase.
    Has any one else's mortgage increased this much so far in 2020 or are we just getting rooked again as usual in the not so Great State of Colorado?

    #2
    We had massive insurance increases, in 2006-2009, after 4 hurricanes made landfall in Florida in 2006. Many escrowed insurance payments increased causing strain on the homeowner. Several insurance companies collapsed after that event. Several others stopped writing or renewing policies in Florida. It was a mess and the Florida State government had to intervene and create Citizen's Insurance company to catch all the policies that couldn't be renewed/purchased.

    At least in Florida, we have Save Our Taxes (SOT) which doesn't allow more than a 3% increase in the millage rate (property tax) year over year for homesteaded properties, so tax assessments on real property don't jump high. That dis-incentivizes tax collectors by using assessments as a way to increase the revenue.
    Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
    Status: (Auto) Discharged and Closed! 5/10
    Visit My BKForum Blog: justbroke's Blog

    I am not an attorney. Any advice provided is not legal advice.

    Comment


      #3
      justbroke, from what I understand Colorado has no such caps! Theoretically our mortgage could keep increasing until, if we had to live here long enough, we could be paying $3000+! Just another reason (besides expensive health issues that just won't go away!) to leave this mountain hellhole as soon as our prison term ends in 2022.
      I can't hardly wait to get out of this infernal financial inferno!
      Last edited by Barbisi; 02-27-2020, 11:33 AM.

      Comment


        #4
        justbroke - I just had shivers go down my back when I think about the 4 hurricanes in Florida. I lived in Daytona Beach in 2006, where I was told hurricanes never hit . I was very happy there was a cap on increases. @Barbsi - i'm sorry you're getting such a big hit. In WA state ours is going up $200 this year which is the highest increase we've had. Ours had to do with school taxes. We have a cap, but they raised it this year, to get the new increase through. Unfortunately I think all states run the risk of increases when there's an expensive weather event. I hope you can do what you're planning to avoid that increase.
        Last edited by sophieanne; 02-27-2020, 12:53 PM.
        Filed Chapter 13 - 07/20/12
        Discharged 8/2/16

        Comment


          #5
          Ooops, sorry it was 2004 for the hurricanes. I was living in Orlando. Two of them made it to Orlando as a Category 1 on the eyewall! They were Hurricane Charley, Hurricane Frances, Hurricane Ivan, and Hurricane Jeanne.
          Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
          Status: (Auto) Discharged and Closed! 5/10
          Visit My BKForum Blog: justbroke's Blog

          I am not an attorney. Any advice provided is not legal advice.

          Comment


            #6
            justbroke - yes 2004 was it. Hurricane Charley took the roof off our house and knocked lots of trees down. I never stayed home for the ones that followed (left for safe cover) and I left for WA state at the end of 2006.
            Last edited by sophieanne; 02-27-2020, 01:04 PM.
            Filed Chapter 13 - 07/20/12
            Discharged 8/2/16

            Comment


              #7
              Ivan was the worst. It hovered over Florida for a long period of time and stalled. I couldn't sleep for 2 days.

              Ooops, I got off track... but the bottom line is to be prepared. Insurance went up through through roof (and many were missing after Charley and Ivan). Insurance was difficult to find as insurers pulled out. In the end, this could be a nightmare scenario for a debtor with a mortgage and escrowed payments.
              Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
              Status: (Auto) Discharged and Closed! 5/10
              Visit My BKForum Blog: justbroke's Blog

              I am not an attorney. Any advice provided is not legal advice.

              Comment


                #8
                Well guys, I only had to live in Virginia Beach for almost 3 years and I hated the tropical humidity and sun! I don't like the beach any more than these arid mountains.
                sophieanne, I'm sorry you lost your roof to one of those awful hurricanes, but at least you got out of there!
                I think I can explain how I feel to you ,sophieanne - imagine a force greater than yourself (BK13 for example ) telling you in 2006 "No you can not leave Florida. You will stay no matter what.No matter how much you hate hurricanes, you will stay here 24/7!" Wouldn't you be unhappy and complain? Imagine if you were powerless and ill as you are now, and couldn't have the funds and credit to get out? That's exactly where I am for two more years with no clear guarantee I can ever leave here - it's scary and on on top of everything else, Colorado is ripping us off yet again and has for a full 10 years now!
                Thank you,though for wishing us luck in keeping that huge increase at bay (for this year at least!) Just getting out of BK13 is not enough for us -we need to get out from under this mortgage and solar panel lease! Hopefully that big increase is the only one Washington State will have for many years to come.
                jb, I know you would probably agree that if we voluntarily stayed here, we would be heading for a second BK13 in time when new medical bills mount (inevitable!) and we couldn't fix the many systems just starting to break down now on top of these yearly mortgage increases.
                This house is a second disaster just waiting to happen -I just hope we can get out with a little money before BK13 strikes again!
                Last edited by Barbisi; 02-27-2020, 06:09 PM.

                Comment


                  #9
                  @Barbsi...I appreciate and understand how you feel and what you've written; but I have to be honest...if it was that horrible...I would walk away from it all, even if I lost everything. I did it many years ago during a bad marriage (left everything I owned and relied on friends till I was able to be on my own) and I'ld do it again. Life is to short... I'ld rather have nothing and be at peace...then put myself through a bad situation that only brought me down all the time. I'm being very honest. where there's a will..there' a way. Everyone has to do what's best for them..i hope you are able to move on in 2022. I'm starting a countdown for you
                  Filed Chapter 13 - 07/20/12
                  Discharged 8/2/16

                  Comment


                    #10
                    Thank you sophieanne, you are right under different circumstances, just letting everything go and relying on others would be sound advice.
                    But, since my mother died, I have no one, apart from my husband ,especially here in Colorado, who would lift a finger to help me in any way! That's a sad reality after 10 whole years here, not one single true friend! Plus we have four vulnerable "children" (cats) we can't abandon to a shelter or the streets. Moving with out funds to a small apartment ( how? where?) is risky, and the trustee would raise the payment by $1000+ and we would still be stuck paying the creditors until 2022 because we could never come up with a 100% payback amount. (This late in the game,we'd be paying more than $5000 a month , which we just don't have!) The furniture and clothing we possess and family heirlooms I inherited are all I have left of my deceased family and they wouldn't fetch much at a trustee or regular auction!
                    I think the problem is not just the BK13 but the fact it is taking place somewhere where nothing worked out well for us and somewhere that I now deeply resent and detest. We moved here never dreaming this area would become both unaffordable and repulsive in just a few years! We didn't have a plan but never expected to have to live here this long! We just didn't understand ,buying a shabby house that almost needed gutting from top to bottom would financially ruin us!
                    Well,maybe if enough people send good karma our way , this will end and Craparado (Colorado) will just become one big bad memory! Amen to that!

                    Comment


                      #11
                      Originally posted by Barbisi View Post
                      Well,maybe if enough people send good karma our way , this will end and Craparado (Colorado) will just become one big bad memory! Amen to that!
                      Here's some more good karma/vibes/luck being sent your way. I'm not saying that Florida is perfect, but we always have room for one more!

                      Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                      Status: (Auto) Discharged and Closed! 5/10
                      Visit My BKForum Blog: justbroke's Blog

                      I am not an attorney. Any advice provided is not legal advice.

                      Comment


                        #12
                        @Barbsi - Washington state would be great too!!!!! Just take deep breaths..the end is getting closer
                        Filed Chapter 13 - 07/20/12
                        Discharged 8/2/16

                        Comment


                          #13
                          Hey guys - jb you crack me up - "room for just one more?" How about 6 more (hubby and the 4 cats)? LOL but seriously thanks for the invite!
                          Sophieanne Washington does sound appealing ,except for the Coronavirus. I hope that you or no one you know has been affected or infected. That is becoming scarier by the hour!
                          Thank you both for your words of encouragement.

                          Comment


                            #14
                            Originally posted by Barbisi View Post
                            Hey guys - jb you crack me up - "room for just one more?" How about 6 more (hubby and the 4 cats)? LOL but seriously thanks for the invite!
                            I don't know if we have room for any more (big) cats. We have a Big Cat Rescue in Tampa Bay that rescue the "pet" cats that some people have had in their homes. I (still) wouldn't mind a pet Bobcat or Serval. LOL

                            Chapter 7 (No Asset/Non-Consumer) Filed (Pro Se) 7/08 (converted from Chapter 13 - 2/10)
                            Status: (Auto) Discharged and Closed! 5/10
                            Visit My BKForum Blog: justbroke's Blog

                            I am not an attorney. Any advice provided is not legal advice.

                            Comment


                              #15
                              @Barbsi - By the time you're ready to move, there will be a vaccine. Our area has not been effected by the virus yet (*touch wood*)..it seems to be focused in a nursing home in the Seattle area. Facebook and Amazon have their employees working from home as each have had 1 person come down with the virus. I think we all have to take precautions and hope it doesn't spread.
                              Filed Chapter 13 - 07/20/12
                              Discharged 8/2/16

                              Comment

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