Does this sound right? (insurance, escrow, credit, fees)

[housingnightmare]

My parents refinanced with the same lender they have been with for years in August (to get lower rates). In September they received a check from the mortgage company for pre-paid taxes and insurance. Yesterday they received a shortage coupon for the amount that was refunded in September. I thought the taxes and insurance was included in closing costs for the next year. Is this normal or does it sound like a mistake?

[tcrackly]

Sounds like a mistake or a change in the pay-out procedure. Our original mortgage lender sold at the closing to Wamu and they charged us for such fees after the closing. Several hours and bottles of aspirin later I discovered that they had not credited us for taxes and fees already paid at the closing. They had to correct themselves and credit our escrow account.

[VictorBurek]

I agree, sounds like somebody made a mistake. When you refinance and set up a new escrow account, the current account is refunded.

I would suggest to call lender and find out what is going on.