Ryan’s Mortgage Blog:
Most homeowners know what “impounds” are in relation to their mortgage…no I am not talking about where your cars go if the police take it away. An impound account is set-up during escrow that allows the lender to include your property tax and insurance payments into your mortgage payment. Depending on the loan and the lender sometimes this is required, but many times is just an option. There are pros and cons to having an impound account, but for the sake of time I will not get into them. If you want to know more, feel free to email me.
I wanted to warn those of you who have an impound account to read their statements carefully. It is rare, but lenders can mess up and not disperse your payments properly to the appropriate company (i.e. the government or insurance company). Even if you have an impound account and have been paying the lender for your property taxes, if they do not get the money to the government, you will be held liable in the government’s eyes and fined accordingly. In turn you would have the right to ask (or sue) your lender to reimburse you for these fines but it can be a very aggravating process. So make sure to read the statements you receive from your lender to make sure your money is being distributed properly.
Another thing to be aware of is that loans can be sold on the secondary market. Make sure the new company has the correct records for your impound account.
Lastly, I pulled this info straight off of the City of SF’s website: If your taxes are paid through an impound account (i.e., included in your mortgage payment), you will receive your annual tax bill and your lender will receive a copy of your annual tax bill. Supplemental tax bills, however, are not sent to your lender, but are mailed directly to you. It is your responsibility to contact your lender to determine who will pay the supplemental tax bill.
In unrelated news…the Oakland Raiders signed Dante Culpepper and I couldn’t be happier. The twist is I am a 49er fan and tend to root against the Raiders. As much as I like to root for all Bay Area teams to succeed, I cannot bring myself to root for the raiders. Culpepper has thrown only 8 TDs compared to 15 interceptions over his last two injury plagued seasons. I don’t think he is the answer the team is looking for…you Raider fans better hope they sign JaMarcus Russell.real soon.
For any mortgage (or football) related questions or comments you can contact me at RBaker@PeregrineLending.com or 805-540-0866.