Increase Mortgage Principal Balance
Is it legal for a lender to increase the mortgage principal balance without knowledge or consent of the mortgagee? Last year I was notified that my property tax had increased and my escrow account would not be adequate. So, I made a payment of the estimated amount needed to escrow. In addition, every couple of months I made an additional payment to escrow to ensure it would not be problem. At the end of the year I get a check back from my lender for overpayment? Then I recently downloaded my Annual Tax and Interest Statement to find the lender applied a negative number to my property tax and my principal. Without notification the lender returned my additional escrow payments, which I started on the date I was informed of the increase to my property taxes. In addition, to returning my escrow payments the lender blew up the value of those returned payments with fees and penalties and applied to my Principal. So my mortgage blew up from $201,000.00 to $214,000.00. I am really pissed off. Is this legal? Is there anything that I can do to remedy this? I am not in a position to pay off the loan. I have explored other lenders to refinance, but found that I do not trust any of the brokers that have contacted me they all seem to be crooks. One company even set up a loan for me without getting my final approval and signature. I went through the entire prequalifying process online to get an interest rate, I told them I needed time to think about it and a few days later a notary calls to set up a loan signing. The company set me up with a new home loan without my consent and it showed up on my credit report. I was so upset that I cancelled the entire process and it took a couple of weeks to get the entire mess straightened out with my current lender. I do not want to leave one dishonest lender for another that is just as bad.