We currently have escrow surplus checks from prior years that are still outstanding. How do others handle these funds?

I would think it would be escheatable under state law.

Agreed. Practically every year, we are trying to get in touch with (usually former) mortgagors who have not yet cashed their check, and which we will be forced to escheat to the state.

What about current mortgage holders whose escrow accounts remain active?

If they are current accounts then why don't you contact them informing them if they don't cash the checks there is a possibility the money will have to be escheated to the state?

I agree with Dan. That's what we do.