6k Escrow overage not being paid to us

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Our Mortgage company is not releasing the 6k overage from our impound account. They say it’s because we filed for bankruptcy 3 years ago in order to stop the foreclosure process. We are on a Ch 13 plan that is allowing us to pay our arrears. Are they allowed to withhold that money? Can’t they just apply it to what we owe them in arrears? We reside in California.


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That would be a great question to ask your attorney. Sure seems that it would be logical to apply it to the amount owed, rather than sit in “never never land”, but since laws vary from state to state and there are no attorneys here, guessing your best bet is contacting yours.

Answered 2 months ago
Ted Rood
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Mortgage companies review your escrow account once a year. There are rules that mortgage companies must follow in terms of how much can be held in your escrow account. If there is a shortage, they ask for payment, or add it to your monthly payment to make it up. If there is an overage, they must refund it. I suggest talking to the lender again, this time a supervisor.

Answered 2 months ago

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