Yesterday, I received my Escrow Analysis Disclosure Statements in the mail.
At least once every twelve months your mortgage company reviews the amount of taxes, insurance and mortgage insurance, if applicable, being paid from your escrow account. In our area this is typically done in November, when taxes are paid and statements are mailed in December.
If they have collected too much over the past 12 months, typically they will spread the overage throughout 12 months, and lower your escrow payment, thus, lowering your mortgage payment. If the overage is too large, they will often mail a check back to you.
If the mortgage company finds that there is a shortage in your escrow account, they have not been collecting enough each month to cover taxes, insurance and mortgage insurance. They will send a deficiency statement indicating the shortage amount, divide it by 12 and increase the escrow payment by that amount each month. Or, they may give you the option of mailing a check for the amount of the shortage, thus allowing you to leave your monthly mortgage payment the same.
If you think that there is a problem with your Escrow Account Disclosure Statement contact your lender directly.
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