An annual escrow account statement is a document provided by a loan servicer to a borrower. It includes detailed information about the funds held in an escrow account, which is typically used for property-related expenses such as taxes and insurance. The servicer is required to send this statement within 30 calendar days after the end of the escrow account computation year, following an analysis of the account.
This term is commonly used in real estate and mortgage lending contexts. It is relevant in civil law, particularly in transactions involving property financing. Borrowers should expect to receive this statement annually, as it helps them understand the management of their escrow funds and any adjustments made to their monthly payments. Users can manage their escrow account statements using legal templates available from US Legal Forms.
Here are a couple of examples of abatement:
Example 1: A homeowner receives their annual escrow account statement in March, detailing the funds collected for property taxes and insurance over the previous year. This helps them understand any changes in their monthly mortgage payment.
Example 2: A borrower notices an increase in their escrow payment after reviewing their annual statement, prompting them to contact their servicer for clarification on the changes. (hypothetical example)
Examples of state differences (not exhaustive):
| State | Annual Statement Requirements |
|---|---|
| California | Requires detailed breakdown of escrow payments and disbursements. |
| Texas | Allows for electronic delivery of statements if consented by the borrower. |
| New York | Mandates inclusion of projected tax and insurance payments for the upcoming year. |
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
| Term | Definition | Difference |
|---|---|---|
| Escrow Account | A financial arrangement where a third party holds funds until certain conditions are met. | The annual escrow account statement is a report on the activity within this account. |
| Mortgage Statement | A document detailing the mortgage balance, payment history, and interest. | Focuses on the mortgage itself, while the escrow statement focuses on escrow funds. |
If you receive an annual escrow account statement, review it carefully. Check for accuracy in the amounts listed and ensure you understand any changes to your monthly payments. If you have questions or concerns, contact your loan servicer for clarification. For assistance with managing your escrow account, consider using the legal form templates available from US Legal Forms. If your situation is complex, seeking professional legal help may be advisable.
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The statement includes a summary of deposits, disbursements, and the current balance of the escrow account.