GMAC Ally Miscalculated Payments on 30 Yr FIXED Refi (making the loan look fantastic!). Ten months later they say we owe $4,000 to escrow AND they are

3rd of Oct, 2011 by User749397

We had a GMAC FHA loan with a 30 yr fixed rate, and about 21 months later we refinanced to a lower interest rate. We refinanced with GMAC and got a 30 year fixed rate loan at 4.375 %. We were originally told the loan would cost us around $4,000 . In the end the loan cost us around $8,000.00. However we were okay with that since the refinanced loan payments were $350.00/month lower than our original loan. We figured we would make back that money very quickly in savings. Ten months into the new payment plan we have received a letter from GMAC stating that our escrow is underfunded and that we must send them over $4,000.00 by the end of the month or they will raise our payments by over $500.00/month (to a payment amount MUCH higher than what we were making at the previous higher interest rate). Even if we do send them the $4,000 they will raise our rate by over $200.00/month (making our total savings over the original loan $130.00/month). It will take us forever to try and make back our $8,00 now AND we have to pay them thousands out of our own pockets. So: we spent $8,000.00 to refinance, and consequently our loan is now $8,000.00 higher than it would have been had we stayed with our original loan. And if we do not send them $4,000.00 from our own pockets the payments will balloon ABOVE what we were paying before refinancing to a lower rate. And this is on a FIXED 30 year loan. This has to be illegal! I think they intentionally:
- Charged us way too much for the loan so they could get fat commissions
- Placated us into playing along that by intentionally miscalculating lower payments Just before we refinanced we had around $5,000 in escrow. How did that disappear in addition to $8,000 being added to our loan amount? NEVER felt so deceived and ripped off in my life. Can anyone help? We have a very short timeline. The payments with the additional $520.00/month are due starting 11-01-2011, and we just got this letter from them last night.

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