Important Information Regarding the Annual Escrow Disclosure Posted in IMPORTANT INFORMATION | January, 2023
ALERT!! YOUR PAYMENT MAY CHANGE-PLEASE ADJUST YOUR RECORDS
Salem Co-operative Bank must send an annual escrow disclosure showing what was paid in and out of your escrow account during the year. Based upon your total annual tax bill, adjustments may need to be made to the account to ensure you have enough money in the escrow account to pay taxes for this coming year.
Banks are allowed to hold up to two months escrow in the account at any given time, Salem Co-operative Bank holds only a one month cushion.
Page 1 of the disclosure:
This page is an estimate of what we think will be required for upcoming property taxes based upon what was paid for the prior year.
This will state if your account is over or short. You will owe the Bank the shortage, and it will be collected over a period of 12 months unless the shortage is less than 1 month’s deposit, (be sure to make any changes to on-line banking or automatic payments from a checking account) as this amount will be reflected in your monthly bill and you will receive a late charge if not paid within the 15 day grace period.
You may be getting a check back for having a surplus in the escrow account. If you believe the taxes will increase this year, I strongly recommend re-depositing the check to your escrow account. Because you get a check back now is no guaranty you will not be short funds next year, we must use the figures we have now and disburse any additional back to you.
Important information regarding your new monthly escrow payment. Prepare for any increases or decreases that will appear on your next billing statement.
Page 2 of the disclosure:
Actual payments made from the escrow account for last year along with last year’s projection.