Legal Question in Real Estate Law in Texas

Pay back a wrongful refund

My mortage company paid me a tax refund in July 2000. They have now charged my escrow for the $1660. They say the refund was not mine. What is the length of time they have to reclaim this money? If they can ask for this money after three years than how long can I take to pay it back?


Asked on 9/04/03, 11:54 pm

1 Answer from Attorneys
Cheryl Rivera Smith The Smith Law Firm

Re: Pay back a wrongful refund

Unfortunately the mortgage company didn't "charge" you anything. They mis-calculated what you would need to have in escrow to pay your taxes and insurance when they come due in the future. Your escrow account is like a savings account where part of your payment is set aside to pay these bills when they come due. The $1660 is to make up this shortfall. Usually you will have two options (1) write a check; or (2) have an increase in your payment to cover the shortfall. Most people choose #2 and if you call your mortgage company, they should work it out with you.

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Answered on 9/05/03, 10:14 am


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