What is a surplus escrow check?
A surplus escrow check is a refund that is issued to a homeowner when there is an overage in their escrow account. Escrow accounts are set up by mortgage lenders to cover property taxes, homeowners insurance, and other expenses related to the property. If there is an excess amount in the account, the lender will issue a surplus escrow check to the homeowner.
What causes a surplus in an escrow account?
A surplus in an escrow account can occur when there is a decrease in property taxes or insurance premiums, or if the homeowner has made extra payments to the account.
How is a surplus escrow check calculated?
A surplus escrow check is typically calculated by subtracting the total expenses paid from the total amount collected in the escrow account.
How long does it take to receive a surplus escrow check?
The time it takes to receive a surplus escrow check can vary, but it is usually sent out within 30-60 days of the surplus being identified.
Can a surplus escrow check be deposited into any bank account?
Yes, a surplus escrow check can be deposited into any bank account of the homeowner’s choice.
What should I do if I receive a surplus escrow check?
If you receive a surplus escrow check, you should deposit it into your bank account and use the funds as you see fit. Be sure to keep a record of the transaction for your records.
Is a surplus escrow check taxable?
Surplus escrow checks are not typically considered taxable income since they are a refund of your own money.
What happens if I don’t cash a surplus escrow check?
If you don’t cash a surplus escrow check within a certain period of time, it may become void, and you may need to contact the lender to have a new check issued.
Can I request a surplus escrow check in advance?
Typically, surplus escrow checks are only issued after the surplus amount has been identified and calculated by the lender.
Can a surplus escrow check be used to pay mortgage payments?
Surplus escrow checks are typically issued separately from mortgage payments and are intended to be used at the discretion of the homeowner.
What if I disagree with the amount of the surplus escrow check?
If you disagree with the amount of the surplus escrow check, you can contact your lender to request a detailed breakdown of how the amount was calculated.
Can a surplus escrow check be reissued if it is lost or stolen?
If a surplus escrow check is lost or stolen, you can contact your lender to request a new check to be issued.