I agree. I wouldn’t surprise me a few, small, totally sleazy lenders tried to force homeowners into foreclosure by low balling the escrow and then putting the subsequent, “short” payments into suspense, but there is now way this is a widespread practice or one used by reputable banks. I also can’t believe any court approve such a foreclosure.
I have never heard of annual mortgage statements, as opposed to monthly.
Besides that, in today’s horrible housing market there is no financial incentive for lenders to try to force bogus foreclosures, on good paying borrowers. They are already taking huge losses on the underwater homes of defaulting borrowers, that they are forced to forclose on.
I can believe the part about lenders/services overestimating the escrow payments a bit, but that is pretty much nickel and dime stuff anyway, and in the end the borrower would be made whole.
Did you see the post on FR where an owner’s house was foreclosed on and there was NO MORTGAGE on the home???