Escrow Funds

[whoops08]

I just looked at our mortgage statement and it looks like there is a substantial amount of money in our escrow account. What happens to that money? The escrow was opened to withhold property taxes and the lender was to pay our prop taxes directly for us.

Thank you

[Flamingo]

Your mortgage lender pays your property taxes before their due date and accumulates those taxes in your escrow fund as you make your monthly payment. The amount is large because your taxes have not yet been paid and are probably due shortly. If you know your due date for taxes and it is close or has passed, and they have not been paid, you need to contact your mortgage lender. Ours are accumulated and paid by the end of September every year so this time of year the escrow amount is very large for us. The same situation occurs if you have your house insurance included in your mortgage payment.

[fltoo]

You asked and answered the question yourself. The lender is going to pay your property taxes for you.

[Banko]

How does it work when your house is included in the bk though and you aer giving it back? Are you only responsible for the taxes up to the point you filed? Also once you cancel your insurance any refund I think should come back to you...correct.? Thanks