Public Service Announcement Regarding Your Mortgage Escrow Account…
Have you ever received an Annual Escrow Disclosure Statement from your mortgage company and wondered, “What the heck is this for?”
Have you ever received a check from your mortgage company telling you that you had paid too much into your escrow account and they were giving you an “Escrow Refund?”
Have you ever received an Annual Escrow Disclosure Statement stating that your Escrow Account was short/had a deficiency and they were asking you to send them extra money?
In my case, all of the above has happened on my escrow account. Because I have been on the back side of the mortgage industry preparing loan documents for over 20 years now and I am only one of five Senior Certified Loan Closers in the State of Colorado, I had the knowledge to begin asking questions of my mortgage company and climb the ladder when I wasn’t getting the answers I knew I needed.
If this were you, would you even know there was a problem? Would you know what kinds of questions to ask? If you did, would you know if the lender was giving you correct information, or if they were just blowing smoke like they tried to do with me?
It is EXTREMELY IMPORTANT that you have good people on your team when you are buying, selling, or refinancing your home. They are the ones who know the backside of things, the things you shouldn’t have to know because you hired an expert to know those things for you… ME! Not to be pretentious, but I can almost guarantee you that there’s not another agent out there who can read and understand loan documents like I can, who can look at your documents when you close, or years after you closed, and know exactly what transpired and how to correct any issues.
That said, because of my expertise…
- I did not spend the “overage” of $943.12 they sent to me.
- I also did not pay the shortage of $1216.04.
- I contacted the lender, went step-by-step through the Annual Escrow Disclosure Statement explaining to them in detail what my escrow payment should be. They agreed with me and said, “The escrow department really made a big mistake on this one. Sorry for all your trouble. I’ll get it fixed.”
What if I was just the average homeowner and I received that check and I spent it? And, then, later, when the mortgage company figured out their mistake and billed me for the money I spent, what would I do? I’m lucky I didn’t have to find out, but I will tell you… With all their errors, they wanted to raise my payment over $300 per month and they were doing it with my very next payment. $300 is a LOT of extra money to have to come up with every month. Could you pay that?
So, please, when you receive your Annual Escrow Disclosure Statement from your mortgage company (which you should every single year the same month you closed), review it to make sure you have enough money in your escrow account to pay your taxes, insurance, and mortgage insurance. BUT, if it comes along with a bill saying you have an escrow shortage, or you receive a refund check saying your account had an overage, PLEASE be sure to check with your mortgage company, your loan officer, or call me to review it with you. I’m happy to help.
By the way, when I need my air conditioner fixed, I call an HVAC expert. If I have a plumbing issue, I call a plumber. If you have a real estate question, please call me at 303.902.0121. That’s what I’m good at!