Escrow account

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Escrow account

Unread postby Bohica_2017 » Tue Jan 16, 2018 5:15 pm

The one thing about arbitration... it's not particulary "thorough" - for better or worse.

Looking at my 2017 taxes... and I realized there was an escrow account on the old mortgage that wasn't considered.

She re-fi'd back in April, closing our old mortgage. Taxes weren't due yet, so it appears that escrow was paid out.

I sent her an email asking for 1/2 that account - minus 1/2 of the property taxes up til the time I moved out (of which I'd deduct 1/2 the tax cost, as well as 1/2 of the interest paid on that mortgage).

Appropriate?
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Re: Escrow account

Unread postby dad2grls » Tue Jan 16, 2018 5:23 pm

First of all you cannot blame anyone other than yourself for monies that you lost because you failed to account for the escrow account. It's up to YOU to know what your assets and liabilities are- ALL of them.

Secondly unless the bank is pulling out too much, escrow is usually based on estimates of taxes due- even if she refinanced, it won't change the amount that would have accumulated in the escrow fund for pending taxes. It's all a matter of determining if it's fair that she "cashed out" the old escrow and put the funds in her account which will be used for the next tax payment. In other words, the new mortgage will also escrow for taxes but there won't be anything in there to start with and the tax bill is still going to arrive at the same time, so from where I sit, nothing really changed with the refi.

Thirdly I highly doubt she'd write you a check for 1/2 the escrowed amount toward taxes even if she thought she got a bit of a sweet deal there. Most exspouses aren't looking to do any favors for their former marriage partners unless complelled to by a court.
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Re: Escrow account

Unread postby LovingDadof2 » Wed Jan 17, 2018 8:55 am

dad2grls wrote:nothing really changed with the refi
I disagree. The original escrow was funded with marital funds. OP is entitiled to half of those funds. Once she refi'd and put the mortgage in her name only, she's responsible for the future tax payments and 100% for funding the new escrow account.

OP, it's a cost/benefit analysis. Costs you nothing to ask her for your 1/2. The question is, if she refuses and most likely will, then is it worth taking her to court and the associated costs for what you hope to recover> Probably not.
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Re: Escrow account

Unread postby lionel2013 » Wed Jan 17, 2018 10:17 am

The question is, if she refuses and most likely will, then is it worth taking her to court and the associated costs for what you hope to recover> Probably not.


Yes, it is worth it. Because in the petition to get his share back he can/should also ask for his attorney fees to be refunded since it is a clear cut situation.

Worked for me last year.
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Re: Escrow account

Unread postby dad2grls » Wed Jan 17, 2018 2:48 pm

LovingDadof2 wrote:
dad2grls wrote:nothing really changed with the refi
I disagree. The original escrow was funded with marital funds. OP is entitiled to half of those funds. Once she refi'd and put the mortgage in her name only, she's responsible for the future tax payments and 100% for funding the new escrow account.


Interesting way of looking at it, and I honestly don't know who's correct in this regard. I'm thinking it's one of those things that a court is going to have to decide, but if I was his exwife I wouldn't be so quick to return those funds, I would naturally assume that they would simply be rolled into the new escrow account to be used for the same tax bill they were earmarked for originally.
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Re: Escrow account

Unread postby ScaredNConfused » Wed Jan 17, 2018 3:54 pm

I'm going through this right now. The mortgage company sent the escrow refund to me and a payoff overage. My ex is insisting it is all hers, even though the payoff overage was a result of her paying the mortgage late.

Obviously my lawyer has told me I'm in the right in requesting the escrow be split and the payoff overage be added to the equity buyout.

Her lawyer is opposed to this, and I suspect we'll end up in court soon. I do plan to ask for attorney's fees, but my arbitration award isn't clear on this topic. Her lawyer has claimed that the escrow and payoff overage are from the previous mortgage and were to help fund the refinance. Luckily her lawyer is an idiot and the arbitration award states that my ex had to use her own resources for the refinance.

I do have an ace in the hole due to her supplying some false documentation that is likely to get a mortgage broker in trouble very soon.

I'll be interested to see updates here on how this situation goes.
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Re: Escrow account

Unread postby lionel2013 » Wed Jan 17, 2018 4:17 pm

I do plan to ask for attorney's fees, but my arbitration award isn't clear on this topic.


Doesn't have to be. You can easily argue that you were forced by your wife's non-compliance to come back to court thus incurring unnecessary attorney fees.

The same argument worked for me six months ago. So in addition to thousands of dollars in penalties for not paying her taxes on time, my X had to spend another $750 for my attorney fees. Completely stupid and unnecessary, but that is how she operates.
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Re: Escrow account

Unread postby Bohica_2017 » Thu Jan 18, 2018 5:00 pm

dad2grls wrote:First of all you cannot blame anyone other than yourself for monies that you lost because you failed to account for the escrow account. It's up to YOU to know what your assets and liabilities are- ALL of them.

.


Never blamed anyone... and in fact, pointed out the downside. But hey... thanks!
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Re: Escrow account

Unread postby Bohica_2017 » Thu Jan 18, 2018 5:08 pm

Really, at the end of the day, I don't think it's worth losing sleep over. I ceased to become owner 2 mos before I left, though paid all the bills. So if the escrow was running high, then I'd be out more.

The mediator made us both fill out asset statements, and this was a detail that was not included.

Going the mediated route, the attorney that ultimately takes it to court (at least in our case) - wrote in a clause that says we (she, since the atty technically represented her) - knowingly waived discovery - as attorneys would have done as a matter of course.

Got no response so far, but she also needs to give me the property tax amt at least. I'm at least entitled to the almost half of 5 mos of property tax deduction.
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