Hi all,
I’ve been doing some looking on he web and couldn’t find anything that could answer my question, figured I’d post here to see if anyone had additional resources. Basically I had worked with Washington Mutual a while back with their mortgage division, and I recall a significant number of people going into default, but not because they couldn’t pay P&I, but because their property taxes jacked their escrow too high. That is, say their property tax was $4000 a year and then went up to $5000 a year. They’d have their escrow payment adjusted to reflect the new amount and to reclaim the shortage in their account.
So this got me wondering, all these bad mortgages out there, has anyone seen any figures relating to whether or not these people can or can’t cover P&I with their current incomes, or if it’s the taxes and insurance in their escrow that’s jacking their payment?