Excess funds in Escrow Account

Posted By: Vive Accommodare

Excess funds in Escrow Account - 11/13/17 11:35 PM

During our escrow analysis, we based the tax impound amount off the previous year's bill. When we attempted to pay the tax collector's office, they came back and said the assessment for the property was not completed yet and they cannot accept the payment amount. We now have excess funds in the borrower's escrow account and recently sold the loan. Do we go off of the Surplus instructions under Regulation X for the funds or would we forward to the new servicer? The tax collector told us it could be several months before the property is assessed.
Posted By: rlcarey

Re: Excess funds in Escrow Account - 11/14/17 12:08 PM

Depends on what your sale agreement calls for you to do with an escrow account upon transfer.