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Negative escrow balance on mortgage statement

my mortgage statement shows a negative escrow balance of $-3368.34. Can someone tell me what a negative escrow balance means?

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Anonymous

Asked by Anonymous at 11:13 AM on Feb. 27, 2012 in Money & Work

Answers (3)
  • It means that, due to taxes or other charges, you owe the mortgage company that money. Typically they'll add it to the end of your loan. Did your taxes increase significantly, or did your area pass an expensive bonding issue?
    BrawnwynII

    Answer by BrawnwynII at 11:16 AM on Feb. 27, 2012

  • They will send you a bill for the negative amount OR they will offer to add it to your mortgage payment. The problem with that is that your payment is already going to go up because either your insurance or your taxes have increased, so if you don't pay the negative escrow in full they will add it on top of it.
    slw123

    Answer by slw123 at 12:56 PM on Feb. 27, 2012

  • We always get a letter if our escrow goes below certain levels and they give us the option of paying it off in full or increasing the mortgage payment due each month. Call the bank and ask about this.
    whitepeppers

    Answer by whitepeppers at 1:53 PM on Feb. 27, 2012

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