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Old 12-17-2007, 08:12 AM   #1
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Default Someone explain this part of escrow for me...

I have asked questions about this, but I get varying answers. So maybe someone here on this forum can answer it.

I have calculated I will be 940 bucks and change positive in my escrow account come March 08. My taxes have already been paid, and will be substantially less next time around due to homestead exemption & disabled vet credits. So all that is left is my insurance, which I have already taken into account. In fact, I took the "balance due by" amount into account, when I know that the insurance amount will be less, since I got reimbursed about 250 dollars last time around. So, hypothetically speaking, I will have more than the 940 in the account after all is said and done.

So my question is this: if there is any money left in the escrow account after taxes and insurance is paid, what happens with it? Does it roll over into next year (which if it does, my monthly escrow amount would be almost 100/month less), or do they cut me a check (which I hope is the case...I need a new pair of shoes)??

FYI, I was last told I would be cut a check, but I searched all over the 'net and my bank website and there is NO mention of what happens with leftover money. Only leftover money after a sale of property is mentioned.
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Old 12-17-2007, 08:43 AM   #2
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Default Re: Someone explain this part of escrow for me...

Quote:
Originally Posted by sandrock

So my question is this: if there is any money left in the escrow account after taxes and insurance is paid, what happens with it? Does it roll over into next year (which if it does, my monthly escrow amount would be almost 100/month less), or do they cut me a check (which I hope is the case...I need a new pair of shoes)??
Brad:
Basically the option is yours and will be told your options once the Escrow Analysis is completed and the letter is sent to you.

Basically your options are:
1. Take the overage in a lump sum check.
2. Apply the overage to your principal.
3. Divide the overage by 12 and reduce your monthly payments by that amount.
4. Leave the escrow be and have the bank reduce the amount they withhold for escrow. Basically 3 and 4 are the same.

You should feel lucky. My taxes went up and I had an Escrow shortage.
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Old 12-17-2007, 08:46 AM   #3
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Default

Yup, that'* exactly right.

You're in a nice position! Most of us end up with shortages...
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Old 12-17-2007, 08:51 AM   #4
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Quote:
Originally Posted by vital49
Yup, that'* exactly right.

You're in a nice position! Most of us end up with shortages...
Ain't it the truth.
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Old 12-17-2007, 08:58 AM   #5
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Hmm....nice.

Think my garage is going to go through some changes

And I was going off the worst case scenerio. There is a good possibility I will be getting more money back than that, since they are using the original amount of my insurance. It went down about 300 bucks after some reassessment.
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Old 12-17-2007, 09:56 AM   #6
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Just don't start spending money until you get the check. I am definitely not an expert in this field, but one thing I do know is every company runs things differently. You won't get a definite answer until you talk to your bank about your mortgage...
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Old 12-17-2007, 10:39 AM   #7
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Oh, I know that. I'm just spending it in my mind. Or saving it. Or investing it. Or using it for mods
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Old 12-17-2007, 11:57 AM   #8
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We've got the kinda opposite problem. We did have a surplus of 900 that we got a check for. But our escrow was calculated on taxes for an empty/unimproved lot. Come August, we'll owe $2000 plus that $900 we got a check for after they empty our escrow. Can I tell them to put more in escrow?
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Old 12-17-2007, 12:02 PM   #9
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Quote:
Originally Posted by J Wikoff
Can I tell them to put more in escrow?
Yup. Or, you can do it yourself. On your mortgage payment coupon there should be an area for you to designate how you want the extra payment amount to be allocated.
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Old 12-17-2007, 01:46 PM   #10
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My Mortgage company sends me a check... My Escrow will be in the positive.. Takes have already been paid, only thing left is the insurance and that went down a little...

I tried to roll it over the previous year but they would not let me do that.... So I simply took the money and paid a little more towards the Escrow....

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