Escrow Accounts

Your mortgage servicer should receive these bills from the local tax authority and/or your insurance agent if that bank is listed as the tax payee/insurance mortgagee for your loan. However, there are instances where mail is lost or mortgagee information is removed. If you receive a notice that your property taxes or insurance have not been paid, please reach out to your lender for assistance.

Yes. Your mortgage servicer pays these bills for you when they come due. However, changes to your insurance agent or policy or an alteration to your tax parcel may not be passed along to your lender automatically. Please inform your lender of any changes to your property taxes or insurance and submit any required documentation. Failing to do so can result in a lack of insurance coverage to protect yourself (your equity) in the event of property loss or delinquent tax bills.

The payments you made at closing were for an initial escrow deposit that runs in correlation to the time of year your loan closes and when the next tax/insurance bills are due. Those funds may have also been for tax or insurance payments that were due at the time of closing. The funds you put into the escrow account with your monthly principal and interest payment are for escrow items to be paid in the future, such as property taxes, insurance premiums, private mortgage insurance or flood insurance, if applicable.

Your escrow account is analyzed at least once per year at your determined escrow analysis date.

A shortage occurs when your escrow account lacks the necessary funds to pay the property tax and/or insurance premiums. This can occur if the property taxes or insurance premiums for the previous 12-month period were more than expected, or if they are estimated to go up within the next 12-month period. To learn about options to cover a shortage, contact your lender.

An overage occurs when your annual escrow analysis determines that there are more funds in your escrow account than are needed to pay your insurance and property tax obligations for the year. This can occur if the property taxes or insurance premiums for the previous 12 month period were less than expected, or if they are estimated to go down within the next 12-month period. If an overage has been determined and that amount is over $50 and your mortgage payments are current, you will be issued a surplus check from your escrow account. If the amount falls below $50, the amount will be credited toward your payment amount and lower your payment accordingly.

Keep in mind, the amount of escrow funds needed can vary over the year. Even with an overage adjustment, your escrow account may come up short later.

The Bank of Missouri estimates the amount of your taxes and insurance premiums for the following 12 months. This determination is based upon your loan closing documents, as well as information obtained from the taxing authority and insurance company.

The total amount needed to pay your property tax and/or insurance premium(s) is divided by 12 and added to your monthly mortgage payment.

Your escrow account is then analyzed to determine if it will have a sufficient balance for the next 12-month period to pay the bills due and maintain a two-month cushion. If it will not, your escrow payments may increase to include the calculated shortage and/or deficiency.

If you have any questions or concerns regarding your escrow account, give us a call at 888-547-6541 or reach out directly to your lender.

You can also reach us by mail.

The Bank of Missouri
Attn: Escrow Department
Post Office Box 309
Perryville, MO 63775

When The Bank of Missouri is your servicer, the funds will come back to you once the deed is released. At that point, you’re responsible for paying the taxes and insurance.