I receive payoff quotes from various banks and a few of them will net the escrow balance when quoting a payoff. Is this legal? I thought that the funds had to be returned to the borrower w/in 60 days of payoff, not netted out.

Does it matter if you net out a negative vs. positive balance?

This Thread has a good discussion on the subject.

Thanks CF, I did a search and didn't come up with that thread...it is helpful!