FAQs About:
Escrow Accounts
What is an escrow account?
When is an escrow analysis performed?
What law establishes escrow account guidelines?
If my escrow account has a shortage, what are my options?
If my escrow account has an overage when will I receive the overage check?
Special Loans
When can I convert my ARM Loan?
What happens at the Balloon Maturity Date?
Payoffs
How do I order a payoff statement?
Why is the amount of payoff higher than the principal balance?
Once my loan is paid in full, when will I receive my escrow account balance?
Once my loan is paid in full, when will we get our PMI/Hazard refund?
How long before we get our loan documents back after payoff?
What is an escrow account?
An escrow account is an account that is established to pay your real estate taxes, homeowner's insurance and mortgage insurance.
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When is an escrow analysis performed?
An escrow analysis is performed annually, to ensure sufficient funds are being collected to avoid escrow shortages and overages. During an analysis we will obtain verification of your current required payments from your taxing authority or insurance authority, which may result in a reduction or an increase in the required monthly escrow amount.
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What law establishes escrow account guidelines?
Real Estate Settlement Procedures Act (RESPA) is a federal law that, in general, dictates how lenders establish and maintain an escrow account for you. A few states also have regulations regarding an escrow account for a homeowner within their state; if the state does not have a regulation, the governing of your escrow account falls back to RESPA regulations.
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If my escrow account has a shortage, what are my options?
Most lenders spread the shortage over 12 months, but you also have the option to pay the shortage in one lump payment. If you choose to pay your shortage in one lump payment, your account will be re-analyzed and your payment will be reduced to principal and interest and the required monthly escrow amount.
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If my escrow account has an overage when will I receive the overage check?
Once the escrow analysis is performed typically the escrow overage check is mailed within 10-14 days.
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When can I convert my ARM Loan?
Not all adjustable rate mortgage (ARM) loans include a conversion option. Please refer to your ARM Note and/or Mortgage Rider for details regarding your conversion. Please be aware that every Conversion Option has an expiration date, which is detailed in your ARM Note and/or Mortgage Rider.
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What happens at the Balloon Maturity Date?
Sixteen Months prior to the Balloon Maturity Date, we will forward an "Early Notice" to you. This notice outlines the conditions necessary to reset your loan. This information can also be found in your Balloon Rider. Approximately four months prior to maturity we will forward a "Required Notice" which includes the instructions and time frames for resetting your loan or paying your loan in full.
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How do I order a payoff statement?
Typically this is performed by Associate Mortgage. However, your written authorization is required prior to our requesting a payoff statement from your current lender.
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Why is the amount of payoff higher than the principal balance?
The payoff statement reflects your unpaid principal balance, interest due and any outstanding fees, (i.e. priority statement fee, late charge, escrow advances, recoverable balances, attorney fees).
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Once my loan is paid in full, when will I receive my escrow account balance?
Escrows are disbursed approximately ten business days after the loan is paid in full. Allow additional mail time to receive this check at your current mailing address.
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Once my loan is paid in full, when will we get our PMI/Hazard refund?
It takes approximately eight weeks for this transaction to be sent to your home address.
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How long before we get our loan documents back after payoff?
The average time is about 45 days from the date of payoff.
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