Escrow refund question

underscore05 · Joined: 02 Nov 2008 Posts: 2 2.17 Dollars($)

We just got a $1000 escrow refund check. 2008 is our first full calendar year in the house.

That's all great...but...our escrow payment is going up $20 a month. That, too is understandable.

My question is, how do both happen? What math is done to determine I'm getting a $1000 refund, then turn around and charge me more per month?

shane · Posted: Sun Nov 02, 2008 5:20 pm Post subject:

You probably had too much in your escrow account and your lender realized that after they paid your property taxes. So instead of keeping your money and then sometime down the road, years and years, raise your payment by $20, they just are refunding you whatever they currently done need... and then are charging you $20/mo more because your property taxes might've been reassessed higher after you purchased.

underscore05 · Joined: 02 Nov 2008 Posts: 2 2.17 Dollars($)

What I paid in property taxes last year is the same as this year (based on municipal records for the upcoming year). Home insurance is the same, too.

I guess I'll have to give them a call tomorrow and find out what's up.

smithsussane · Posted: Sun Nov 02, 2008 7:54 pm Post subject:

Hi underscore!

Welcome to the forums!

Yes, I think that will be great move. The lender will be able to explain why he is charging you $20 more after refunding $1000. Do let the forum members know what your lender said.

Feel free to ask if you have further queries.

Sussane

Guest

How long should I wait for escrow refund check after paying off mortgage? I paid off my mortgage 03/30/09.

savior70 · Posted: Wed May 06, 2009 4:51 am Post subject:

Hi

The federal regulations need the lenders to refund the money held in the escrow account within a month or two after the loan has been paid in full. If you have not received the escrow refund check from the lender within this time, you have the option of filing a complaint with the Dept. of Housing and Urban Development.

Guest

I found and old escrow refund check in the amount of $ 16,000.00 payable to me and it was dated way back april16,2006 . my question is can i still claime that money or can they replaced it with a current check dated 2010 ?

Niicss · Posted: Tue Jan 05, 2010 4:19 am Post subject:

Your query has been answered in the given page:
http://www.mortgagefit.com/know-how/about32755.html#142426

Have a look at it. I hope it'll help you.

Guest

A quick call to your lenedr will give you all the answers. Let us know what they tell you?

Laurie Reiss
Financial Mortgage Advisor

[Email address and contact details deleted as per forum rules]

Guest

After paying off mortgage recieved refund, do I claim this as income on taxes

jenkin7 · Posted: Thu Apr 15, 2010 1:31 am Post subject:

Hi Patricia,

The taxes and insurance payments that you make to your lender is tax deductible. Thus, if there is an escrow overage and you get a refund, you will have to report this as income on your taxes.

Guest

I received 8,000 escrow in 2008 and did not think it would be taxable income. IRS now revising my taxes and charging me fo that additional income. What to Do?

Posted: Mon May 03, 2010 3:27 am Post subject:

Escrow refund is your income and thus the IRS is charging taxes for it. You will have to pay off the taxes to the IRS for the money received.

Guest

were almost on a closing date on june29, 2010. the mortgage company is asking us to bring a cashiers check payable to them. do i have to pay that escrow before closing coz the seller of the house, a brand new hoome told us that we dont have to pay for the closing cost and they will take care of it, only that we have to pay the 3.5% as downpayment which we did. now. the question is , do i have to pay for the escrow, im confused coz even my home insurance , the seller told us that they will take care of it. i have the exact monthly payment for the loan which will start on august 2010 included in the payments are home insurance , property taxes, hoa cost. please help. need to know the facts. tnx
principal and interest and so on. now, why do i have to pay for the escrow since i already make a downpayment and the seller will take care of the closing

adonis · Posted: Thu Jun 10, 2010 12:24 am Post subject:

Hi emerson,

The escrow account will hold your future home insurance premiums, your property taxes, etc. In that case, though the seller will be paying the closing costs, you will have to pay the escrow dues.

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