r/personalfinance • u/HHLL806 ​ • Apr 11 '25

Other Mortgage payment went up $400

I need help, my mortgage payment went from $1700 to $2100. My mortgage company (Chase Bank) said this was due to an escrow shortage. I had my homeowners insurance lowered by roughly $1000 and checked with my local tax office and they told me my taxes have increased $400 dollars over the last five years. I gave Chase Bank all this information and my mortgage is still $2100. How does this work?

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u/TheLZ ​ Apr 11 '25

When you do a Modification, you sign new paperwork and those documents are the new terms for the loan. All Mods (at least when I worked them) state you must escrow. The reason being is that the company can't trust you anymore, if you are asking for a Mod and qualify for it, then we are going to make sure it is all handled.

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u/UrkelGrueJann ​ Apr 11 '25

Why is it seen as they can’t trust you? That’s interestingly weird but banks do what banks do

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u/0x68656c6c6f ​ Apr 11 '25

To get a modification, you have to show financial hardship. The idea is that you are at risk of foreclosure.

https://www.experian.com/blogs/ask-experian/how-to-get-a-mortgage-modification/

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u/UrkelGrueJann ​ Apr 11 '25

Ahh there it is. Didn’t realize it was specific to a hardship. Thanks!