Bank of America sent me a statement that is increasing my mortgage payments by approx. 100.00 per mo. I went to the local BOA & she called the mortgage dept. She asked them why was my mortgage payment increasing when my city real estate assessment (received it this past Saturday), shows a $37,000.00 decrease  BOA said the city sent them info that my taxes will increase next year. She then called my city assessor's office and they said they have not sent BOA anything and won't know if it will be increased until July 01, 2010.  I'm not sure who to believe, trust, or what (if anything) I can do about this. Below is how BOA worded the increase: The increase takes effect April 1, 2010:

Amount needed for taxes and insurance             Last analysis                 This analysis

Homeowners Insurance                                     $     44.75                         48.25     (I haven't received any notice of increase from my homeowner's insurance co.) 

FHA MIP                                                            136.90                        134.82

City Taxes                                                          194.47*                      246.68**     (the 194.47 was based on prior assessment of $332,600)*

                                                                                                                        (new assessment dtd 7/01/2010 is $297,500, so how could the escrow                                                                                                                                   amount increase?

Thanks for your help.

New total $429.75 - 376.12 (old total) = $53.63 projected increase.  Write BofA servicing a letter challenging the increase.  Include a copy of the new assessed value showing a decrease and include the information that you learned from the assessors office.  Ask them to keep the payments as they are currently.   Is there a current shortage in your escrow account? If so it will need to be paid in cash or they will recover it in increased monthly payments.  Servicers can't keep more than is required.  Here is a link to an article and you could refer to Regulation X and Z.  http://tinyurl.com/ycmfw56