Escrows Check - A Bonus After Closing

Hi there! Welcome back! Today I wanted to talk about a nice little bonus that might surprise you after your sell your house. Did you know that most homeowners can expect another check from their mortgage company after closing? I almost always forget about this when I sell a house, and it is such a nice surprise to get. Watch the video or read on to see what it’s all about and if you could get one too.

So What’s This Bonus Check?

After the sale of your home, you might get a little bonus check in the mail a few weeks later. This happens after the sale goes through and everything is settled with the title company. The check I’m talking about is the escrows check, and it is your mortgage company returning any money they have been collecting and holding in escrow for you for things like insurance and property taxes.

When you have a mortgage, you typically have the option to pay things like property taxes and insurance directly to your mortgage company. Instead of paying multiple different bills, all of your “house” money goes to one place and your mortgage provider will pay your taxes, insurance, and whatever other items they are holding in escrow for you each year. The mortgage company collects these each month along with your mortgage payment and it adds up month after month. When you sell your home, the mortgage company no longer needs to collect these things because it is someone else’s bill to pay. You’ll have had some time and funds accrue in your escrow accounts and the mortgage company will need to return these funds to you.

What Do I Need to Do to Get My Check?

The short answer is, “not much”. I like to tell my clients to expect this return from your escrow accounts a few weeks after closing, so they know to look for it. You’ll also want to make sure that your mortgage company has the appropriate address on file for you. If they send your check to your old house, you won’t be there to get it (and it might not be forwarded appropriately)! Call them or go online as soon as you close to update your address. If you’re selling an investment property, this is extra important because the mail is not going to be forwarded to you at all.

You can go into your online account and try to figure out how much of a refund you’ll get if you like to plan ahead, but you can also just wait and be surprised.