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I over paid on my escrow in 2008 for approximately $1500.00. I am 22 years old and have owned my house for 2 years. My dad got a check in the mail from his bank for the over payment and told me it was the law that they had to refund the money. I called Wells Fargo today and they told me they would put the over payment towards my mortgage? This makes no sense to me as I understand it is my money and I should get a check and use it for what I chose? My mortgage is paid off months in advance so it has nothing to do with owing anyone money. Does anyone have any info about this?
I over paid on my escrow in 2008 for approximately $1500.00. I am 22 years old and have owned my house for 2 years. My dad got a check in the mail from his bank for the over payment and told me it was the law that they had to refund the money. I called Wells Fargo today and they told me they would put the over payment towards my mortgage? This makes no sense to me as I understand it is my money and I should get a check and use it for what I chose? My mortgage is paid off months in advance so it has nothing to do with owing anyone money. Does anyone have any info about this?
How is putting the overpayment toward your next mortgage payment(s) any different than the bank giving you a check for $1500 so you can write them a check or checks back for the next $1500 due on the mortgage? Either way they just reduced your net cash outflow by $1500, so whether they write you a check or credit your next payments, the dollars and cents are the same. Your pocket is up $1500. Or am I missing something else?
thats it, they wont be "crediting" my next payment just putting it towards the principle, but I will still owe the next payment just as if they hadn't done so.
thats it, they wont be "crediting" my next payment just putting it towards the principle, but I will still owe the next payment just as if they hadn't done so.
I suspect your father is correct, but I'm not 100% sure. You might want to do some more searching on this.
I would send a registered return receipt letter to them requesting the full amount of overpayment to be refunded by check immediately, and also request a response indicating when this will be done. Also you probably did this, but review the paperwork, to find out if there is any information. If they refuse, ask them what permits them to do so. (This might prompt a check to get written, or you to at least get an answer).
The problem here is, the bank is really using your money for no cost. Multiply that by many customers who had escrow overpayments and that's probably a truckload of money that helps to offset all of the mortgage losses.
My company does an escrow "assessment" around April, keeps a certain amount for a "cushion" as they call it and then sends a check for the difference. I'm quite a bit over and in fact called them about it and that's what they told me. I know in the past I have received a check for overpayment.
I received a check from my bank last year, I had an overpayment of $800 or so. My bank needs a cushion of $300 or so, so I received a little over $400 from them. That is their policy, to return the money to me.
This year, I had an underpayment, after the cushion, of $50 some dollars, instead of requesting the money outright, they are adding it to my house payment, a little each month, until the next assessment.
That is my local credit unions policy. Maybe Wells Fargo has a different policy.
Just call them and I'm sure you'll get the answers.
Yes you are missing something. "The Question". The person asking the question wanted to know weather or not the mortgage company had a right to dispurse his/her escrow overpayment any way they liked or if he/she had the right to request a refund of the 1500.00 overpayment. Yes he/she has a right to request said funds be refunded to him/her. Doesn't matter if it reduces his/her's net cash outflow by 1500.00 the point is that it should've been the choice of the consumer who could've had other plans for the money not the mortgage company. Its the principal of the thing.
Quote:
Originally Posted by 43north87west
How is putting the overpayment toward your next mortgage payment(s) any different than the bank giving you a check for $1500 so you can write them a check or checks back for the next $1500 due on the mortgage? Either way they just reduced your net cash outflow by $1500, so whether they write you a check or credit your next payments, the dollars and cents are the same. Your pocket is up $1500. Or am I missing something else?
I to have my mortgage through wells fargo. A couple of years back of overpaid and they sent me a check for the difference. I've been with them for 9 years and I've never known them to keep the money.
Quote:
Originally Posted by floofy07
I over paid on my escrow in 2008 for approximately $1500.00. I am 22 years old and have owned my house for 2 years. My dad got a check in the mail from his bank for the over payment and told me it was the law that they had to refund the money. I called Wells Fargo today and they told me they would put the over payment towards my mortgage? This makes no sense to me as I understand it is my money and I should get a check and use it for what I chose? My mortgage is paid off months in advance so it has nothing to do with owing anyone money. Does anyone have any info about this?
i am in default with my mortgage company by 12 months and i had always overpaid on my monthlly payments so i had a $165.00 overpayment in my account since early 2011 when I was unable to make furhter payments.
I have been trying to get a modification and they sent a letter requesting documents which i returnd ontime although they requested it to be returned by march 2, 2012. THey sent me a letter stating that I did not comply with returning the docs on time so I am ineligible to receive a modification. How can this be. Is that why they returned my overpayment so they can pursue foreclosure actions against me? I am working with A-Home to help with mortgage payment services. How can this work for me?
I just got my check of $1600. It should be up to you if u want to make extra mortgage payment or keep the money for your own personal use. They shouldn't just automatically make a payment. That's YOUR money. My bank us B of A
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escrow...
escrow overpayment
