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can a mortgage hold my escrow surplus check for a late payments

I have a surplus check that belongs to me from my escrow account,they will not release it to me until I make a payment on my mortgage it is a big check what shall I do help me.

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome ella_townsel,

The mortgage company can hold the surplus check to compensate for any late payment charges.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a large escrow surplus and my account is current. The mortgage company told me that I have to make my next payment on time and then call back before they will release my escrow surplus. Can they do this? I told them that was against the law because legally that's my money and they have no right to hold it and make me wait until another mortgage payment is made. Am I correct?

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gmakerley's picture
gmakerley | Joined: November 9, 2007 07:36 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

for me, it's worth the trouble to pay the next payment and then receive the check. if that's their conditions for releasing the funds, is it truly a hardship to do that?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

if payments are current. they have to release escrow surplus promptly.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

hi, everybody,,sorry for me english I learn.. my question is I have a surpluscheck but I'm inloan modification program they can hold my check because I'm still in this this program.
thanks.
alma

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jenkin7's picture
jenkin7 | Joined: June 4, 2007 11:02 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi alma,

The lender would not hold your escrow surplus check as long as you are current on the mortgage. Have you been making the mortgage payments on time? If you have been making the monthly payments while in the modification program, you should not have any problem in receiving the check. But if you have stopped making the payments, the lender can hold your surplus check.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I am currently 2 years into a 5 year Chapter 13 (100% repayment plan); the mortgage company is holding a sizeable surplus despite being current. How do I get my money back?

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savior70's picture
savior70 | Joined: March 25, 2009 05:14 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

To biggamejames,

I believe you are talking about the refund of escrow surplus money, right? Well, if the escrow analysis shows there is excess money in the escrow account, you are entitled to get a refund from your mortgage company. If you have been making your mortgage payments on time as per the Chapter 13 for the past 2 years, there's no reason why the mortgage company will be holding the surplus money. Have you talked to the mortgage company regarding the refund?

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

yes, they said while the current status of the account is good, the contractual status of the account will remain as is until the Chapter 13 has been satisfied.

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

after the company contacts me about my modification then can i get my escrow surplus

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi anonomous!

Welcome to forums!

The escrow surplus is returned at the year end. If you have a surplus amount in your escrow account at the year end, then the lender will send a check in that regard and you can withdraw the money.

Feel free to ask if you've further queries.

Sussane

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

I have a 30-year fixed mortgage, my montly payment including tax and insurance was $2670/month, today I got a letter from my mortgage company that my county tax was increased by $140/month. Also as of Oct 2010, I will have to make a payment of $404/month for deficiency/shortage/surplus. Question is what is this surplus for? And is it only one year or forever? Thanks...

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jerry's picture
jerry | Joined: October 17, 2005 03:24 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Welcome Kevin,

Your lender will be the best person to answer this. You should contact your lender and check out if there is a surplus money in your escrow account. If there is a surplus in the account, then you won't have to pay for the shortage. You'll have to pay as per the new payment structure forever.

Thanks,

Jerry

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

We are currently in [url=http://www.mortgagefit.com/bankruptcy/chapter13.html]Chapter 13 Bankruptcy[/url] and have fallen behind on our mortgage. We have a surplus in our escrow. Can this money be applied to the outstanding mortgage payment?

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jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Char,

Your query has been replied to in the given page:
http://www.mortgagefit.com/predeal/about48539.html

Take a look at it. Hope it helps you.

Thanks

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

For 11/2 years I begged my mortgage company to understand that my taxes were incorrect. I went to my township, they faxed and sent letters saying that they removed my homestead tax credit-resulting in overcharging me by 1800.00.
In Jan 2010 I received a letter from my township saying that 1800.00 was refunded to my mortgage company. I called and was told because i was behind in payments they couldn't give me my money. I was told it would be applied to my past dues. So, assuming that went to my late payments when /I did send a payment in I actually went into foreclosure.
They then put me in a loan modification program which I wrote and begged them to set my taxes at the right rate- they claim they did. I sent 2 western union checks to for the first payment, I called they said they received everything and my first payment would be due in 2 months. I called to make my first payment and they claimed that I was already behind 1 month. Claiming they only received 1 check
I lost it- I said I was not paying anything until this tax problem is resolved and they find my second check.
Needless to say by the time they corrected my taxes I again went in foreclosure. I signed up for the forbearance program paid that successfully and they finally gave me my 1800.00 2 months later. in june of 2011.

My questions are--1. Can they hold my money due to a CLERICAL ERROR by my township? Do they have to release my refund wether I'm current or not 2. The day I signed the loan modification I was current, why didn't they release my money then.

Thank you

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Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

If you were not in default, then the lender won't be able to hold back the refunded amount. They should have given it back to you.

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