Question by Auren W: Will I get my escrow money back from American Home Mortgage after refinancing?
I refinanced 2 weeks before American Home Mortgage declared bankruptcy. They still owe me my escrow money (a new escrow account was created at closing with the new company). Is the escrow money legally mine and protected from the company’s bankruptcy, or can the company default on paying it back? Thanks!
The AHM mortgage was paid off and my new mortgage and new escrow are already in effect with my new company. The procedure was the AHM escrow was to be refunded to us and we already have a new escrow in place. While waiting for the AHM escrow to be refunded to us, AHM declared bankruptcy. Is the escrow money legally mine? Continuing to make payments is not the issue–we are already paying mortgage payments and already set up a new escrow with the new company.
Answer by Spock (rhp)
it is yours; now as to whether they kept it separate [in a client trust account like they should have] …
tough to guess
might depend on state law in your state … you’ll have to google that for yourself.
it is almost certain sure that the refi was recorded the same day or the next day … you can check on this at the usual place, possibly online [land records … just put your real name in].
one thing’s for sure … your regular monthly payment is still due at the address you were told. someone will be taking care of that and they’ll follow up if the money doesn’t show up.
Know better? Leave your own answer in the comments!