[quote=paramount]To me even .01 is a liability, this is the explanation I got from WF:
Currently, we are collecting the following monthly amounts:
Real Estate Taxes: $209.78
Property Insurance: $54.58
Beginning June 1, 2014 we will start collecting the following monthly
amounts:
Real Estate Taxes: $247.79
Property Insurance: $57.33
Your escrow account also has a minimum balance requirement equal to two
months’ base escrow. Base escrow is the amount of money collected each
month for the future payment of taxes and insurance, as indicated in the
figures above. Because the base escrow amount has increased to $304.12,
your minimum balance requirement has increased to $607.24.
At the time of the analysis, we reviewed a twelve-month forecast of
anticipated escrow activity. This forecast indicates your projected
escrow balance over the course of the upcoming year. In March 2015, the
projected escrow balance would be -$18.59, which is $624.83 short of the
minimum required balance. In order to maintain the minimum balance
requirement, a deposit must be made in the amount of $624.83. Therefore,
I have provided the details regarding the two options for repayment of
your shortage below.
The shortage may be spread over twelve months and paid in monthly
installments of $52.99 beginning June 1, 2014. With this option, your
new payment breakdown would be as follows:
Principal and Interest: $1,183.75
Real Estate Taxes: $247.79
Property Insurance: $57.33
Shortage Adjustment: $52.99
Total: $1,538.86
If you were to instead pay the shortage in full prior to June 1, 2014,
your new monthly payment would exclude the monthly shortage collection
of $52.99. With this option, your new monthly payment amount would be
$1,486.87.
Adding in the $100 HOA this property is now a liability.[/quote]
Parmount your cost went up $53 . where did you get $100?
If it makes you feel better one of my properties HOA is $400/month with a special assessment. But it then again was bought dirt cheap and its still cash flow positive. That and I am waiting for the nice appreciation that will happen
FWIW:
You can choose not to do impound I think… Call up your lender. BUT
You do realize in the state of CA, impound accounts pay a 2% interest rate on the funds impounded, which is more than that 1% CD rate…….
That’s why I impound as much as I can now….. lol…
BTW. I don’t see real estate in your area or San diego coming crashing down. It might slow down or might trickle down. But there’s plenty of sideline money looking for property. I think people continue to underestimate that. I sure do.
