escrow account with lender - Posted by ron

Posted by ron on April 06, 2006 at 10:44:53:

I guess I’ve kind of looked at it the last few months more closely
I haven’t looked at past bills for a yearly overview
I will have to look into that.

escrow account with lender - Posted by ron

Posted by ron on April 03, 2006 at 16:50:04:

Let’s say I have been paying on a rental for 4 years
and my statement shows

$1350 for principal and interest
and $250 for escrow
then say the payment is $1600 per month
let’s say I’ve been paying what they ask for years
the $1600 for example.

If my escrow balance shows like 1300-1400 balance
I would assume that I have reserves since I don’t
have a negative sign next to it.

My questions is, can I just send in $1350 for a little while, and let that escrow go down to maybe $400 or so, then start paying the $1600/mo again?

It just seems like a waste to have all of that money in escrow.

What are peoples experience with lenders on this?

Re: escrow account with lender - Posted by Natalie-VA

Posted by Natalie-VA on April 05, 2006 at 21:42:11:


Doesn’t your lender reconcile your escrow account each year to adjust for the current insurance and tax payments?


Re: escrow account with lender - Posted by dealmaker

Posted by dealmaker on April 03, 2006 at 22:08:59:

If I’m your lender you’ll be in default, probably your lender will consider that too! Your loan agreement probably states that there is a formula for calculating HOW MANY months of insurance and taxes to be held.

If your insurance bill gets paid next week and it’s $1100, all of a sudden you only have $200 in escrow and they might send you a “payment adjustment” jacking you up to $1900/month to get you caught up.

Best thing is get you LTV down to the point where you’re handling your own I and T, assuming you’re responsible enough to keep the money around for when it’s needed.