Check from mortgage co? Overage in escrow?

I received a big check from my mortgage people. They said they did an analysis and that I had an overage. They issued me the check of the amount. Has this happened to you? The lady said it may happen every year.

Re: Check from mortgage co? Overage in escrow?

I've gotten one every year.

If it was for a lot (over 1k), I would double check that the escrow for next year isn't going to be short.

I also wouldn't 'spend' that money, I'd put it in the bank, just in case.

Message edited 10/5/2011 2:51:25 PM.

Re: Check from mortgage co? Overage in escrow?

It happened to us when our taxes went down the last two yrs. The banks calculate escrow monthly payments based on the previous yrs taxes and they can only keep a certain percentage over in the account. Some banks choose to adjust the payments after the fact. Ours (BFCU) refunds the difference.

Re: Check from mortgage co? Overage in escrow?

Yes. We got it after being in the house 1 year and then again this year. We sent it back. It was adjusted because of how taxes are being reflected based on your home's current value. This will be adjusted at some point so send it back so it's not short the following year when they redo the analysis.

Re: Check from mortgage co? Overage in escrow?

Yes - my lender evaluates every year. I never understand how things can fluctuate so much though. There have been years where my payment went up $100+/month because of a 'shortage' and then the payments went down because of an overage, then they stayed the same but i got a check (like you - mine was for $300+ so nothing crazy). This summer there was a perfect balance though. Payment didn't change and I didn't get a check.

Re: Check from mortgage co? Overage in escrow?

we got a check for quite a bit of money. we put it in the bank and were hoping to use some of it while i'm on maternity leave. our mortgage payments also went down a bit. i guess i'll keep an eye on it for next year.

Re: Check from mortgage co? Overage in escrow?

we got it the first year but have had a shortage every year since....

Re: Check from mortgage co? Overage in escrow?

thank you all so much for your responses. The more I read about it, the more it seems like it will eventually have to be paid back once I get with with a shortage.

It's not every day a lender issues you a check, so I knew there had to be a catch!

I'll just keep it in the bank, which is what I'd do anyway, because I'm boring like that.

Re: Check from mortgage co? Overage in escrow?

we got one once... now we have a deficit. not their fault thought, there was some confusion with our tax number cause the previous owners had grieved the taxes.

Re: Check from mortgage co? Overage in escrow?

I got on last year and they have an option to take the amount as cash, or apply it to principal. I applied it to principal. The less I have to pay back the better.

Re: Check from mortgage co? Overage in escrow?

We've gotten a pretty nice check the last 2 years in a row after our taxes were paid. Our taxes have been going down so that is why... hoping to get another one this year.