IF BOA pays my taxes early--- do they give me that money back?

[ohhhdear]

In Florida, we will know what our property taxes will be on or around Nov 1st.

My tax money is in escrow.

If BOA pays my tax bill by December 1st--- I get a 4 percent credit.

Question is---- I believe BOA WILL pay by December 1st and who will be entitled to this 4% credit? Me or Boa?

Does anyone know?


Last year--- in Florida, the earliest you could pay was Nov 1st and you would receive a 5 percent credit if paid by Nov. 1st. BOA paid on Nov 21st and thus, they received a 4 percent credit and I don't think they credited me, but I am not sure. Last year, this would be about $100 +

But this year it is changed to 4 percent if paid by Dec 1st.
If paid by Jan 1st--a 3 percent credit is given.

But who is supposed or entitled to get this credit if they pay early?

[SillyWorld]

Here in PA we pay on a 6 month discount, Bill comes in early AUG, AUG-SEPT 1st discount, OCT-NOV 2nd and after NOV there is no more discount pay fulkl amount and if not Paid by end of JAN you pay penalties and turned over to collections, and yes it is $100.00 first discount and reduced 50% each time, but when the escrow first gets the bill and you have the money in the account to make payment they should make paymenty ASAP to get a savings means they only withdraw the discounted amount from the escrow, now if the money is not there but will be there after 1 or more mortgage payments then you could loose the discount

[AZOwner]

Your mortgage company is only allowed to hold in escrow what they pay for you in property taxes.

Any discount you receive and that result in a credit would normally be credited to the amount you pay, through your loan, for the next year. Save with underpay. If you don't pay enough, through your mortage to cover the property tax, your mortgage company generally gives you the option to pay the lump sum back to them, or spread the amount owed over the next year, into your monthly mortgage payment.

I have never heard of anyone getting a check for funds paid out of escrow in excess -- unless you're selling your home.

[cjbory]

I think they are required by law to keep 15% of the amount you owe in taxes on your escrow account so the account does not falls to 0 when the tax bill comes due. Let’s say your taxes are 1000 dollars then you’ll need $1150 on your escrow account by November 1st.


Any amount is left on top of that should be refunded to you whenever they do the escrow recalculation for the next year. Now if you are not paying your mortgage I doubt they will refund anything as your are not contributing to your escrows for next year.