The word inflation is getting a lot of attention right now. As you begin your journey into 2023, we want to help you prepare for how this could affect your escrow account in the coming months.
In alignment with the KS Revenue, Meritrust will mail you the annual escrow analysis disclosures with surplus or shortage details by the end of January. All new escrow payments become effective for the March 1 payment.
Here are responses to some of the most frequently asked questions about escrow, property taxes, mortgages, and more from the experts at Meritrust:
Q: When are my property taxes due?
A: For Kansas residents, real estate taxes are billed in the following way:
- First half of property taxes are due on or before December 20, 2022.
- Second half of property taxes are due on or before May 10, 2023.
Q: How do I know what my mortgage payment is for 2023-2023?
A: Meritrust will send an escrow analysis in late January-early February, which shows what your mortgage payment will be for March 2023 through February 2024. If you are unsure how your automatic payments are setup or would like to get one setup, please contact the Loss Mitigation team at 316.651.5166 (option 5).
Q: Why did my escrow payment increase?
A: Escrow payments are subject to change annually to stay in alignment with an increase/decrease to a homeowner’s insurance premiums and property taxes. We recommend contacting your lender to confirm why your payment has increased.
Q: I paid my shortage. Why didn’t my payment revert back to the same amount?
A: While paying the shortage can reduce your overall monthly payment, if any premiums increased due to inflation, the minimum amount we collect will also increase.
Q: When will I receive my escrow surplus?
A: Meritrust will send any escrow surplus in excess of $50 by check to the address on file by March 5, 2023.
Q: Why do I have an escrow shortage or delinquency?)
A: An escrow account is built to collect 1/12 of your annual insurance premium(s) and property taxes. Shortages and/or deficiency balances are created when the lender receives a bill higher than the amount allocated to the escrow account. Lenders must adjust the escrow withdraws to accommodate for the difference and collect for the following year’s higher premium.
Q: I would like to pay my shortage(s) in full. Who do I contact?
A: Please contact Meritrust by calling 800.342.9278 or visit a branch to apply funds to your escrow balance. To pay specials in full, contact your local county treasurer for payoff information. Kansas residents: Find your county treasurer information here.
If you have additional questions about this information, you may visit the Kansas County Treasurers Association website to learn more.
