I would simply like to know what will happen to the money if i just don't cash the check. I have e-mailed the bank (Bank of America-useless) many times asking them to just void the check and put the money back into our escrow accoun
Lenders don't have a choice regarding refunding overages, it'a a federal law that they can only keep a certain amount above what is required to satisfy the amounts being paid out of the escrow account. Four or five years ago I had my lender send me a refund for an escrow account overage. Like you, I knew that it wasn't correct. I contacted the servicing department and they told me that the taxes were current. So i figured there must be a mistake and contacted the county treasurer. The county treasurer told me that the taxes had been paid and were current. At this point I couldn't figure out what had happened so I put the money in a savings account and about a year later I received a demand from a 3rd party representing Washington Mutal, who wasn't my lender, demanding that I pay them within 15 days the taxes that they said they had paid on my parcel. Lenders send one check or wire transfer for many properties in a county at one time. WAMU had mistakenly paid mine and once I verified what had happened with the county I sent them the check.