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Escrow account surplus and late payments

Posted on: 28th Mar, 2012 01:08 pm
Hi:

I am currently late on my mortgage payments for over 9 months and now I want to REINSTATE my mortgage and pay the lender all I owe, including late fees/legal fees, etc. On the other hand, I just realized that the lender has been sending us checks (2-3) with the escrow account surplus and I never cashed them on time!. Last week I tried to cash them but the bank returned them, I guess because of the deadline that was already pass due (and I assume because the lender stopped the payments due to my late payment status with them). What I want to know is what happens with that money that I have never collected? Can I ask them to use it in order to pay part of what I owe in late payments, or is simply lost money? Help please!! I assume there are at leat $6,000 in uncollected escrow surplus that I could really use to repay them some of my debt!
Hi jessi,

You can inform your lender about the checks which you haven't chased on time and ask him to use the money in order to recover his mortgage. However, it will be the lender's discretion whether or not he will use that amount to recover the debts.
Posted on: 28th Mar, 2012 07:50 pm
Hi jessi!

Welcome to forums!

I agree with what Adonis has said. It will be completely the lender's discretion whether or not he will consider your request and let you know whether or not they will utilize that money in order to recover their debts.

Feel free to ask if you've further queries.

Sussane
Posted on: 29th Mar, 2012 09:13 pm
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