Torin said:
@Kim
Their escrow analysis says there is a $5450 overage.
Gotcha. I think you’ll only get an accurate answer from your mortgage servicer. They aren’t required to refund the overage if you aren’t current, and only they will know their policies about how they will handle an overage when you are not current.
Try escalating your call, and good luck!
@Kim
Thank you! I have a feeling that they just don’t know the answer either. If it’s law that they can’t do so, I understand. But if it isn’t law then why not??? It would save a family and the bank from possible foreclosure.
@Torin
Lots of first line customer service people just don’t know the answers to more complicated questions.
I wish they did, because I only ever call when I have a complicated question in the first place lol.
Someone at the company knows, you just have to find the right person.
@Torin
NAL but have worked on plenty of defaulted mortgages.
When you have a mortgage in good standing, that “paper” - your mortgage is an asset to the bank. The second you default, even if you get current the next day, that paper is no longer an asset.
If the bank doesn’t have to refund you that money, they’ll absolutely hold on to every penny they can. If your mortgage is no longer an asset and only a liability on their books, distributing money to you only increases their liability.
I said NAL because your state laws may say differently about escrow funds. If I were you I’d just bluff and say it’s illegal in (OPs State) to hold escrow overages due to default or not apply them to mortgage payments. They know what the law is. If you’re right they’ll do it. If not you didn’t have a leg to stand on anyway.
How much are annual taxes and when are the due?
No, mortgage has be current to get any escrow refunds. For example, there may not be enough money in escrow to cover the overage due to the missed payments.