anyone know if after your taxes are paid in escrow for the year, do they refund the surplus to the escrow?

Question

taxes on my home are paid for the year, i have a suplus escrow balance.. does this balance get refunded to me as overpayment?

Answer 1

I have a $1300 surplus in my escrow and my future taxes will decrease since I get homestead in 2008. My lender is Wells Fargo and I called them today and they said they review all accounts in Janruary and if there is a surplus, they will refund it to me. So it all depends on your lender.

Answer 2

Depends on the lender and your agreement with them. Some will refund the excess and others will only apply it to next year's escrow, with a corresponding reduction in monthly escrow payments.

I've seen a few ditzy lenders who issue the refund to the borrower, with the check payable to the borrower AND the taxing municipality. Try to get THAT check cashed.

Answer 3

Usually your payment would just get adjusted downward unless the extra was expected to be needed for next year's escrow payments.