I’ve been at it again!
This time, the video I posted to @TikTok is about escrow refunds. If your client is in process of divorce, often which party receives the federal income tax refund is established. The decree may also specify who claims the kids as dependents.
Have you ever thought about who receives the escrow refund from the existing lender if one party refinances the home into his or her own name individually? Is it the person who is awarded the property in the divorce?
Keep in mind the existing lender will issue a check in the name(s) of whoever is on the mortgage. Depending on what funds are escrowed (taxes only? taxes and insurance?) and where we are in the year, it could be a significant sum.
Click escrow refund to watch my brief video. And as always, let me know if you have any questions!