Escrow account errors are one of the most common mortgage servicing violations. Overcharges, miscalculated shortages, and failure to pay taxes or insurance can inflate your loan balance and push you into default. Learn how to identify, dispute, and use escrow violations in foreclosure defense.
Get Free Case ReviewUnder RESPA, servicers must conduct annual escrow analyses, cannot require excessive cushions (generally limited to 2 months of escrow payments), must pay taxes and insurance on time, and must respond to escrow-related notices of error under Reg X. Common violations include: charging more than the allowable cushion, failing to conduct proper annual analysis, misapplying escrow payments to principal/interest instead, failing to pay property taxes on time resulting in tax liens, double-paying insurance policies, and refusing to cancel escrow when the loan-to-value ratio permits it. Escrow errors artificially inflate the amount the lender claims is owed — creating a genuine dispute of material fact that can defeat summary judgment. A Qualified Written Request specifically addressing escrow issues can force the servicer to account for every charge. If the servicer fails to properly respond, you have RESPA claims. See: QWR Guide and Regulation X.
We identify escrow violations, prepare QWRs, and use escrow disputes to challenge foreclosure amounts and create counterclaims.
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