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Can a mortgage company hold your escrow overage?

Posted on: 16th Mar, 2009 10:21 am
My son and daughter-in-law just recieved a notice from their mortgage company (Chase) that they have an overage of $3200.00 in escrow. They are behind in their payments so the bank won't release the funds. They requested that the overage be applied to their past due principle and were told that Chase wouldn't do that, but as soon as they got up to date they would mail them the check. Their delinquent amount is about $3100.00 which is less than the overage. They have them in a "catch-22" situation. Is this legal in Florida?
Welcome lorettaacole,

Normally, the mortgage company refunds the extra amount in the escrow account to the borrowers. But if there are any kind of back payments, then you won't get the refunds.

I guess, as your son and daughter-in-law have defaulted on their mortgage payments, so the lender is holding back the escrow overage.
Posted on: 17th Mar, 2009 01:12 am
I have an overage of $900 in escrow and my mortgage company says they will keep it until next excrow evaluation next april. who keeps the interest accumulated and is this legal/
Posted on: 09th Dec, 2012 02:29 pm
Hi helen,

At the end of the financial year, the lender will return the escrow overage in full to you. This is completely legal.

Thanks
Posted on: 09th Dec, 2012 10:12 pm
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