Escrow Refund Check?

I just got a HUGE refund check from HSBC that they overprojected my escrow account for last year. It was my taxes that they over estimated, so I wondering now that what if now they underestimated and I am going to get a huge bill next year?

has this happened to anyone?

Re: Escrow Refund Check?

We got a check last month (a few days before we were leaving for vacation, how convenient ).

We were nervous about it too...

Re: Escrow Refund Check?

no, we always have to pay into escrow, because of an escrow shortage...for once I would like to finally get a bill

Re: Escrow Refund Check?

we only got one our first year....(in Jan - we closed in Sept) after that we owe each year!!

Re: Escrow Refund Check?

Yes, if your actual tax bill comes in higher than what was estimated, and you don't have enough in escrow to cover it, you will need to make up the difference. Your bank may allow you to pay it in installments, I'm not sure how that works.

Re: Escrow Refund Check?

how much do you guys wind up paying?

Re: Escrow Refund Check?

be VERY careful with that, you should call them to verify that they are sure. Our mortgage co did the same thing to us-sent a big check & then 6 months later said Oops-we were wrong it went up again & our mortgage went up $900 per month for SIX months to correct it. They will have no mercy on you if they change their minds. The more people I talk to the more I hear their projections are often wrong & the borrower gets the shaft.

Re: Escrow Refund Check?

Uh-oh!! We've gotten this twice. The first one, I guess I'd meant to check into but we forgot and filed it away. Then we got another one this year for even more, and DH looked and saw we had the previous one. I called the bank and they told me that yes, they had miscalculated and made us pay to much into escrow so our payments went down again and I then cashed both checks (I was surpried the first one went through since it was over a year old.) We pay extra every month -though I put it towards principle - so I hope they didn't screw up!!

Re: Escrow Refund Check?

ours happened after our mortgage was sold for the 4th time to GMAC ( I HATE THEM-I will never choose them as a lender). Not only did we get a refund but they lowered our original payment slightly & we thought it was because we were paying our own insurance. we assumed they were right because the loan was sold so many times & GMAC is a "big name". We didn't have any major changes in our taxes or insurance, it was purely their screw up. I even got them to write me a letter detailing the mistake. The problem is nobody noticed till 6 months later & by that time our escrow was so short it became a nightmare. We also found out that even though we pay our own ins. GMAC wants a year of premium in escrow in case we don't pay it & they have to. All stuff I had NO idea about till this happened. The best part is I spent literally 2 whole days on the phone talking to people in the middle east trying to get it resolved.