When to stop paying on mortgage?

[screentest]

thanks ST,

So then, I gather that your mtg and insurance payments, have NOT been included in the mtg paments. That is: their has been NO escrow to service. So that you could continue to pay your taxes or insurance IF you wished on your own.....WITHOUT having to depend on the mtg Servicer. Is this correct?

This is the way I would like to set up my mtg payments (without Reaffirmation) until and if I decide that it is a good idea to stop paying the mtg. I think this way I will only have to worry about the mtg payment itself, and can then deal with the taxes and insurance on my own.

Just not sure how to set it up that way, and not sure if the mtg servicer will "allow" me to discontinue the escrow service?

Thanks hedge and ST

Chris

Chris,

That is correct. In my case when I refinanced in 2005, my new lender (now closed by the FDIC) did not offer impounds and I had no choice but to handle the taxes and insurance on my own. It was difficult at first however now it has been a blessing because I couldn't afford the taxes last year or this year so I just didnt pay them.

I dont know if a modern day lender will allow a debtor to cancel an impound account so in your case it may be more difficult to get around that.

ST

[ladycee]

Hey ST,

thanks ...........I see you are waiting on your discharge in a few days! Good Luck!

Sorry.........I really don't understand what you mean by "impound"???

and....did you originally have the mtg servicer handling your taxes + insurance? if so, how did you go about "separating" them?

thanks again,

Chris

[screentest]

Hey ST,

thanks ...........I see you are waiting on your discharge in a few days! Good Luck!

Sorry.........I really don't understand what you mean by "impound"???

and....did you originally have the mtg servicer handling your taxes + insurance? if so, how did you go about "separating" them?

thanks again,

Chris

Yes, an impound account is one set up by your lender to account for the annual property tax and insurance. This is taken out of and included in your monthly mortage payment. Your lender then makes these payments on your behalf.

ST

[screentest]

I originally had an impound account included in my mortgage; however, this was cancelled and not offered by the lender I refinanced with in 2005. This left me paying taxes and insurance directly to the county and the insurer on my own.

[ladycee]

o I see, thank you very much.

So you yourself did not have to go about separating them then. Mine has not been "impounded" that I can see. I had no PMI when I orginally purchased the home, because I put 20% down, but I voluntarily set up the escrow myself....so I don't think it can be called an "impound". Before this bk, I knew that anytime I wished, I could send a letter to the Servicer to have them stop servicing the escrow, but now that I am not Reaffirming, I don't really know if the option is still available to me.

Thanks,

be sure and let us know when the Discharge comes thru.

Chris