Frequently Asked Questions (FAQs)Escrow

What is an escrow account?

An escrow account is established to manage property taxes and insurance premiums for your home. Each month, part of your monthly payment is applied to your escrow account. When your taxes and insurance premiums become due, Highlands Residential Mortgage uses the funds in your escrow account to make the payment.

What is an escrow analysis, and when is it performed?

By law, we are required to perform an escrow analysis each year. Property taxes and insurance premiums may increase or decrease, so we review your escrow account balance to make sure there is enough money to cover future property tax bills and insurance premiums. We’ll send you an escrow analysis statement after each review to let you know of any changes to your account and payment amount.

For information on your specific property taxes or insurance costs, contact your local tax office and your insurance provider.

What is an escrow shortage?

An escrow shortage means that your escrow account does not have enough funds to cover future tax bills and/or insurance premiums. You can pay your shortage in full, or spread the shortage amount over a 12 month repayment period. Shortages are often the result of an increased tax bill or insurance premium.

What is an escrow surplus?

An escrow surplus means that your escrow account has more money than what is required to cover future tax payments and/or insurance premiums. If your surplus is greater than $15, we will mail you a check for the surplus amount. If your surplus is $15 or less, the surplus amount will remain in your escrow account. If your loan is delinquent, the surplus amount (regardless of amount) will remain in your escrow account until the next scheduled escrow analysis.

how can we help you?

Highlands Residential Mortgage is committed to excellence in service. If you have any questions, shoot us an email and we’ll be happy to assist you.

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