Comments on: Mortgage Escrow Accounts Explained

By: Ryan

Ryan — Mon, 15 Mar 2010 12:43:32 +0000

Jennifer, it will depend on when the statement was sent. It should be disclosed on the statement regarding the shortage amount and how much you need to send to the escrow company before your escrow account is current. If in doubt, give the escrow company a call for verification.

By: Jennifer

Jennifer — Mon, 15 Mar 2010 07:17:08 +0000

Hi Ryan
I recieved a statement regarding my escrow shortage. My question is does that shortage amount include my mortage payment for the month, or do I have to send a seperate payment for my mortage? Thanks jennifer

By: Dena

Dena — Wed, 10 Mar 2010 21:27:39 +0000

This is so wrong. I just went through this with my mortgage company and due to federal regulations they won’t accept prepayment to my escrow account. In other words, “too bad, so sad.” The only choice I have is to contact .gov for information on the Homestead Exemption. I’m on SSDI and cannot afford for my mortgage to keep going up. There’s only so much money to work with. I thought I could pay them the overage amount plus the additional adjustment. Chase say “no.”

By: Ryan

Ryan — Wed, 10 Mar 2010 20:32:12 +0000

Brenda, I’m sure there are some laws out there regarding what is to become of your escrow account when you pay off your home. My recommendation is to contact your lender and/or escrow firm and ask them what the requirements are. They may hold on to certain funds until the next insurance or tax bill is due, but they certainly can’t keep the funds. they have to either pay the bills for you or return the money to you in some fashion. It’s the details I am not sure about.

By: Brenda

Brenda — Tue, 09 Mar 2010 16:31:35 +0000

When I pay off my home, is the bank required to return the money in my Escrow Account? And, if they are, is there a law that requires them to do so (i.e., my mortgager is one of the bailout banks and I want to be prepared with legal support to get my money from them).

By: Karen

Karen — Sun, 07 Feb 2010 05:18:08 +0000

Hi Ryan,
thank you for following up with your response. I will certainly take your advice.

Sincerely,
Karen

By: Ryan

Ryan — Sat, 06 Feb 2010 15:44:54 +0000

Karen, each escrow company handles their accounts differently. There may be a section in the terms and conditions that states the only activities that funds can be used for, and how all shortages and surpluses are to be handled. Even if they won’t apply the funds this time, I recommend contacting them for information regarding how funds and payments are to be handled. That way at least you know what will happen should something similar happen in the future.

By: Karen

Karen — Fri, 05 Feb 2010 20:51:34 +0000

Hi Ryan,
I just got off the phone with my lender (which happens to be a local bank) regarding applying the surplus from last year’s Escrow payments to this year’s payments and they told me they couldn’t. Is this common practice? Are they right?

It just doesn’t make any sense to me that they can’t do that rather than take it out of the account, send it to me only for me to make monthly payments rather than just pay the whole thing off with the surplus which happens to be more than is due this year???

I would love to know if they really can choose NOT to do this because after all it’s MY money!!