Escrow or impound accounts
These accounts are required by lenders to pay future recurring expenses such as real estate taxes and insurance premiums. Monthly payments and reserve accounts are determined by a complex system and your monthly bill is adjusted whenever property taxes or insurance premiums vary. However, these escrow payment adjustments often result in overcharges to homeowners!

What Kinds of Errors Occur?
Escrow errors include miscalculations of monthly payment amounts, incorrect, late or even non-payment of tax bills or insurance premiums as well as incorrect reserve levels. Escrow shortages occur when insufficient funds are held to cover future bills and overages occur if excess funds are held in the homeowner’s account.

Why do These Mistakes Occur?
Mistakes occur for several reasons including inexperienced personnel, incorrect escrow reviews, faulty software as well as incorrect procedures for computing escrow monthly payments…often resulting in monthly overcharges and excess funds held in the reserve or “cushion” account.

What can I do to resolve my escrow problem?
Having an escrow account audit by a licensed bar attorney can help determine what your correct monthly escrow payments should be. Contact our law firm today to find out if you are most likely in need of an escrow account audit.