Here's an email I received from a reader:
I purchased a home last summer, and as a promotional offer, my builder paired with some mortgage lenders to offer a '6 month no-pay' deal. (I had limited choices of mortgage lenders in order to get this offer.) I moved into the house at the beginning of August, and I paid my first mortgage payment a couple of weeks ago. In the meantime, the builder paid - the principal and interest only - on the first payments. Back in August after I moved in, I received a first bill due in Feb for my first payment plus all the months of escrow. I called back then to ask about this, and the mortgage representative told me that all I had to do was pay the single-month principle/interest/escrow, and not the other months of escrow, though he didn't really seem to understand my situation.
When I look at my outstanding escrow balance, I can see clearly that there is sufficient money available there to pay both my annual property tax as well as my annual homeowner's insurance, and there will be even more before either of those bills come due. Clearly the mortgage lender doesn't need these escrow payments in order to pay the bills that the escrow is for.
Now, the actual bill lists only my monthly payment amount as the "Payment due" on the first of the month. The "past due escrow" is also listed, but the bill says that if I haven't paid it already, please include it with this payment. I have sufficient money to pay it (I bought a house that's well within my means) but I don't see why I need to give that money to them just so they can have peace of mind, unless I am obligated to do so.
So...am I obligated to pay up?
Any thoughts for him?