Question by FirstL: Can a mortgage company take money from my escrow acct to payoff the loan they are refinancing? Austin, TX?
I was with EverHome mortgage and I refinanced with Mountain States Mortgage.
The payoff amount was $ 175,000 and what Mountain states did was that they drew $ 1,000 from my escrow account with EverHome and used it along with the $ 174,000 they provided for a total of $ 175,000 to pay off the loan. Is that legal? I live in Austin, TX.
Answer by JoeyV
What’s the problem here? They used $ 1000 tied up in your escrow account so you didn’t have to come up with another $ 1000 or borrow $ 1000 from them. Call them up and tell them you wanted to borrow another $ 1000 and put the money back in the escrow account. If they lent you $ 174K they probably would lend you $ 175K. You probably should have noticed that on your closing statement though and fixed it prior to closing.
What do you think? Answer below!