What happens to my escrow account when I pay off my mortgage?

+1 vote
asked Jun 4 in Real Estate - Renting by FrikLober (250 points)
What happens to my escrow account when I pay off my mortgage?

1 Answer

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answered Jun 5 by Lilly21 (27,510 points)
When someone buys a home and gets a mortgage the bank will use your Escrow account to pay things such as property tax payments and insurance payments.

When your home mortgage has been paid in full the bank will then examine your escrow account and any money in that escrow account should then be sent back to you.

You'll only get money back from your Escrow account if there's any money to be sent back.

If you don't hear back from your bank about your Escrow account you should contact them to find out what is going on with your Escrow account and if you're owed any money back from the Escrow account.

Once you do pay off your mortgage and the deed goes into your name you need to also make sure that the property tax bill will be sent to you to pay otherwise you risk losing your home due to tax foreclosure if the property taxes are not paid on time.

Contact the bank and county assessors office to make sure you'll be receiving the Real Estate Tax bill in your name and at your address so you'll be able to get the property tax bill on time and be able to pay it.

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