I believe so. If you owe them the money, even if it was their mistake they reported to you incorrectly, I don’t see why they cannot borrow from the escrow account to satisfy your other debts.
Prior to paying off the mortgage the closing agent should have requested and received an “estoppel” letter from the mortgagee. The letter states the exact amount due to payoff the loan on date certain. If there was an estoppel letter, they can’t raid your escrow account to cover their mistake.
I believe so. If you owe them the money, even if it was their mistake they reported to you incorrectly, I don’t see why they cannot borrow from the escrow account to satisfy your other debts.
Yes, they can do so. Read the fine print in the mortgage documents. Such ‘fine print’ will reveal under what circumstances this can occur.
Prior to paying off the mortgage the closing agent should have requested and received an “estoppel” letter from the mortgagee. The letter states the exact amount due to payoff the loan on date certain. If there was an estoppel letter, they can’t raid your escrow account to cover their mistake.
realtor.sailor