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Company Loan Type APR Est. Pmt.

Escrow refund check

Posted on: 14th Jan, 2009 07:06 am
can a mortgage company hold your escrow check if your mortgage is not up to date? They sent us a letter outlining four options and we decided to have them refund our escrow to pay doctor bills. They then used it for our mortgage. Like other people we are trying to work with our mortgage company, they are very uncooperative, to modify our loan.
Hi mayaguez,

An escrow account is a trust account which is held in the borrower's name to pay property taxes and insurance premiums. The lender will use the money from this account only to pay off taxes and insurance premiums. Are you looking for a loan modification with your lender?
Posted on: 14th Jan, 2009 10:58 pm
Yes we are but, so far with many conversations with our lender, GMAC, they are not very uncooperative and have taken our escrow check. Is this legal? I think it is against federal regulations isn't it? We have given them a hardship letter and gone through all processes nd they have given us the run around for quite a long time. What can we do? We have medical bills that have caused us much hardship, brian tumor, knee replacement, vertigo. We have many medical bills and wish to get a loan modification. We can afford a lower mortgage payment.
Posted on: 15th Jan, 2009 07:31 am
Hey Rosa,

Loan modification does not mean that the loan has been forgiven. It is just that the lender will give you an alternative plan to pay off the loan. You will still have to pay for the escrow though you have applied for a loan modification.
Posted on: 15th Jan, 2009 11:15 pm
Does anyone know if you can fight a mortgage company from adding an escrow acct. to pay taxes and insurance in a loan modification if the owner already pays them herself.
Posted on: 06th Feb, 2009 09:07 pm
Hi Jo,

You can negotiate with the mortgage company that you do not want to go for an escrow account. But if the lender insists then you will have to go for the escrow account.
Posted on: 13th Feb, 2009 11:22 pm
if i change homeowners insurance and i receive a refund will my mortgage compamy demand the refund due to them stating my escrow account will be paid what other options do i have if i dont send mortgage company the refund
Posted on: 27th Apr, 2009 01:00 pm
Hi bigdaddy,

As far as I know, the mortgage company does not have the right to demand the insurance refund check from you.
Posted on: 28th Apr, 2009 01:04 am
If you currently have an escrow account, having the taxes & insurance included in payment. If your not making your payment, your not covering the taxes & insurance. Keep in mind Tax Sales supercede all other property liens. I hope this helps...
Posted on: 28th Apr, 2009 07:09 pm
Every year I recieve a check for overpayment for my escrow acct. I want to know is that my check to keep or do I suppose to endorse it and send it back like I have every year? If I keep it will I be penalize for it?
Posted on: 11th Mar, 2010 08:59 am
Hi ms. m. jones,

You can keep the escrow refund check with yourself. This is the extra money that you have in your escrow account at the year end. You won't be penalized for keeping it.

Thanks
Posted on: 11th Mar, 2010 11:08 pm
hello all, great information. we recently went through a refinance of our home to lower the rate. we financed $4k on top of the outstanding balance and brought another $2400 to the closing. the mortgage consultant stated that we would have to turn over the escrow refund to him for origination fees and such. the loan is closed and i feel no obligation to send him the refund. am i correct in my actions? we overpaid the taxes for the 2nd half of 2009 and there is a surplus of over $3k. the consultant said that he would get the surplus back for us for half/$1500. we live in illinois and i didn't know who to call. should we contact the attorney general? is there a regulatory body that deals in these matters? thank you for your time.
Posted on: 09th Dec, 2010 09:23 am
Hi Chris!

Welcome to forums!

If the loan has been closed, then you are not liable to pay the escrow refund to the mortgage consultant. You can contact a local attorney and take his opinion in this regard.

Feel free to ask if you've further queries.

Sussane
Posted on: 09th Dec, 2010 08:58 pm
Dear Friends,
Don't know what to do. Contacted my credit union, mortgage company, first an agent told me that I had approximately 620 dollars in escrow (overpaid). then called back about my refund second agent indicated my insurance increased 30 more a year not a month and taxes only 5 dollars more a year not a month. therefore would not be seeing absolutely no refund, and had to keep 2 months cushion to offset next years cost . Does this sound correct? Am I missing something? I'm confused with this last agent. She went over this several times apparently over the computer and could not see anything? Does this sound
Posted on: 12th Jan, 2012 08:12 pm
Hi Julieta!

Welcome to forums!

Escrow payments may increase on a yearly basis due to an increase in your insurance payments. There is nothing wrong in that. You can ask your lender to clarify the whole matter in writing so that you can check out what is going on.

Feel free to ask if you've further queries.

Sussane
Posted on: 12th Jan, 2012 11:18 pm
It was me above... just forgot to log in.
Posted on: 12th Jan, 2012 11:26 pm
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