Removal of escrow account

[ncornilsen]

Hi,

I'm really tired of having to deal with the escrow analysis process on my mortgage. They consistently over estimate how much I need. I also want to remove it because I want to structure my tax payments to do two tax payments in one year, then none the next, to alternate claiming standard or itemized deductions after I get married.

Anyway, they recently denied my request to remove Escrow because my LTV was .9, based on the original purchase price. The property has gone up in value a lot since I bought it. I need to establish a value over $228,000 when it's really worth about 290,000. My county tax 'market value' is listed at 269,000.

Would they accept that as proof of value? Or will I need to pay $400 for an appraisal from an independent source?

[redcedar]

Unfortunately, the lender has all the power here. Tax value was a commonly used valuation prior to the mortgage meltdown. Lenders greatly reduced what they will accept and their flexibility can be little to none. Also, it can differ greatly lender to lender.

I think your best bet is to call them and ask to provide the tax value. Based on the numbers that you show, if the lender is at all willing to look at it, there is alot of room in the tax valuation for them to get comfortable.

[Drifterrider]

Would they accept that as proof of value? Or will I need to pay $400 for an appraisal from an independent source?

You are asking the wrong people (us).  You need to ask "them".

[protostache]

You should have gotten a letter with the denial, and that probably lays out exactly what they will and won't accept. Read it closely.

My servicer (Wells Fargo) won't drop PMI until we hit 80% LTV according to the original loan, but they were willing to drop escrow when I asked. Yours might have other requirements. If you have an FHA or VA loan you're probably out of luck, because the terms of offering those loans require escrow forever, if I understand correctly.