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Escrow 101: Covering Things You May Not Already Know

What is escrow analysis and how often is it performed?

Carrington Mortgage Services, LLC (CMS) completes an escrow analysis each year to ensure your escrow account is funded correctly. During the analysis we will determine any surplus or shortage, and adjust your monthly payment accordingly to cover all of the bills that are paid through your escrow account.

The analysis outlines the activity on your escrow account for the past year and the anticipated activity for the upcoming year. We use the tax and insurance amounts from the most recent year to project taxes and insurance for the upcoming year.

How do you get my tax amounts?

Your tax statements are sent to us directly from your taxing authority. If you receive a tax statement from your taxing authority it should state that it is for informational purposes.

Customers in Pennsylvania and New Jersey: The majority of tax authorities within New Jersey and all tax authorities in Pennsylvania will not send your tax bill to us. Once received, please send your tax bill to Carrington Mortgage Services using the mailing address or fax number below.

Customers in California with a supplemental tax bill: Sometimes your taxing authority will send the bill directly to you instead of us. If you receive a supplemental tax bill, please send it to us using the mailing address or fax number below.

For those of you in PA, NJ, or with supplemental tax bills in CA, don’t worry, we will send a letter closer to the time your taxes are due with instructions on what to do with your tax bill once you receive it.

Carrington Mortgage Services

P.O. Box 9213

Coppell, TX 75019-9229

Fax: 817-826-0406

When does my mortgage servicer pay my taxes?

Tax authorities have various due dates depending on your state, county, and/or city. Your taxes will be paid prior to the due date to prevent any penalty or interest being charged. If your taxing authority offers a discount period, we will pay your taxes within the discount period.

What is force-placed insurance?

Force-placed insurance, also known as lender-placed insurance, is a policy placed by a lender, bank or loan servicer on a home when the property owners’ insurance is cancelled, or is deemed insufficient. This insurance protects the lender’s financial interest in the property, meaning it covers the value of your loan amount, not the value of your property and personal belongings.

What do I do if I have force-placed insurance?

If your insurance coverage is discontinued by your insurance provider, we recommend contacting your insurance provider immediately to have a policy reinstated on your property.

Having your own insurance policy protects your interests in the event of loss or damage to the property. Compare home insurance rates to get the appropriate coverage for your situation at the best price.

If you have been assigned forced placed flood or wind insurance, this may be because you live in a designated flood zone or high wind area and your insurance was not adequate to protect the property. Contact your current insurance provider to discuss options to add this coverage to your current homeowner’s policy.

Once you have your updated insurance information, please click here to upload your new insurance information. Uploading accurate insurance information allows us to continue making timely insurance payments on your behalf.