When are escrow surplus checks mailed?
Escrow surplus checks are typically mailed out within 30 days of the completion of a mortgage escrow analysis. This analysis is conducted by the mortgage servicing company to determine if there is an overage in the escrow account, usually due to changes in taxes or insurance payments.
FAQs about Escrow Surplus Checks:
1. How often are mortgage escrow analyses conducted?
Mortgage escrow analyses are typically conducted once a year by the mortgage servicing company.
2. Why would there be an escrow surplus?
An escrow surplus can occur when the amount collected for taxes and insurance is more than what is actually owed.
3. What happens to the escrow surplus if there is no overage in the account?
If there is no overage in the account, the surplus amount may be applied to future payments or returned to the homeowner.
4. How can I tell if I am due an escrow surplus check?
You will receive a statement from your mortgage servicing company indicating that there is an overage in your escrow account.
5. Can I request an escrow analysis to see if I have an overage?
Yes, you can request an escrow analysis from your mortgage servicing company to determine if you are due an escrow surplus.
6. What happens if I don’t cash my escrow surplus check?
If you do not cash your escrow surplus check within a certain timeframe, it may be voided and you may need to request a new check.
7. Are escrow surplus checks taxable?
Escrow surplus checks are typically not taxable since the overage represents funds that were collected for taxes and insurance.
8. Can I choose to have my escrow surplus credited towards my mortgage balance?
Some mortgage servicing companies may allow you to request that your escrow surplus be applied towards your mortgage balance instead of receiving a check.
9. What do I do if I believe there is a mistake in my escrow analysis?
If you believe there is a mistake in your escrow analysis, you should contact your mortgage servicing company to address the issue.
10. Can I opt out of having an escrow account altogether?
Some borrowers may be able to opt out of having an escrow account if they meet certain criteria set by their lender.
11. What should I do if I receive an escrow surplus check for a property I no longer own?
If you receive an escrow surplus check for a property you no longer own, you should contact your mortgage servicing company to inform them of the error.
12. How long does it take for an escrow surplus check to arrive after an analysis?
Escrow surplus checks are typically mailed out within 30 days of the completion of a mortgage escrow analysis.