mortgage/tax escrow payment

Anonymous · ‎08-24-2012

My mortage payment is $2000 (principal and interest)+ $400 tax escrow = $2400. If I send only $2300 by law how will the payment be allocated? $2000 and $300 for tax or $1900 plus $400 for tax? Dick

Chbraswell · ‎08-24-2012

Well i dont know if this is by law, but a few things colud happen, A. it will be rejected because you are not paying the full amount, B.It will go into a suspense account until you pay enough for one full payment. Or if they will accept the payment it would go to your P & I and the rest placed in a suspense till you get the rest in one full payment. However, i always see A or B happen, more than anything.

Beginning:Explus 630 eq 573 tu 593
Current: EXplus:677 Eq 642 TU 727
Goal: Explus 700 eq 700 tu 800

Merrick: 1550 Capital One:1150 Barclay: 2000 Walmart: 300 Chase Freedom: 500

Booner72 · ‎08-25-2012

Are you a hundred bucks short? If it's just one month, call them and tell them that you will be short 100 for escrow and you will make it up soon.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720

StartingOver10 · ‎08-26-2012

Read your note. It will tell you how the payments are allocated. The order of application will be printed right in your note. If you send in a short payment there will probably be fees added on to the amount due and all those fees get paid first, then the payment is applied to what you owe so you will be more than $100 short. Do whatever you can to get the extra $100 to send in with the payment.