What is an Escrow Analysis?
An Escrow Analysis helps determine how much money should be deposited into an escrow account to cover future insurance and tax obligations. An annual escrow analysis is performed to determine whether the monthly payment amount needs to be adjusted. Adjustments would be based on payments that have already been made on your behalf, estimated future amounts, and the amount in your escrow account at the time of the analysis.
An escrow analysis, performed annually, ensures that the sum of your monthly escrow payments is sufficient to cover all items that are to be paid from your escrow account such as real estate taxes and home insurance. The analysis shows if your escrow account has funds left over or is short of funds after all disbursements are made. If taxes or insurance rates have risen during the year, your monthly escrow amount will rise as well. If they have dropped, your escrow payment may decrease. Because escrow analysis usually is done in February, any escrow payment changes likely would take effect with your April payment.
Once each year (sometimes more often, under special circumstances), Bogman will analyze your escrow account to see if we are collecting enough money each month to pay your escrow bills when due. Each year we adjust the escrow portion of your monthly payment to reflect the most recent information we have from your insurance company and tax collector. NOTE: If during the year, we find that you did not have enough money to pay a bill when due, Bogman will advance the money on your behalf, to ensure that the bill is paid on time. It is during this escrow analysis that we adjust your payment to include a little extra each month to pay us back what we advanced. In effect, we give you an interest free loan, you just need to pay us back over the next twelve months. If you can prove a special hardship (for example a devastating illness or disability, etc.), we may consider spreading the repayment over 24 months. Contact our Customer Service department if you think your situation deserves consid
The accounting that a mortgage servicer performs to compute your monthly escrow payment, determine whether a shortage, surplus or deficiency exists in the account. An analysis of the escrow account is performed at least annually to ensure sufficient funds are being collected to avoid shortages or overages.
