Mortgage payment - tax escrow refunds?

Setup & Support
1

Hi,

I’m wondering how to deal with tax escrow refunds within the transactions? My bank refunds me annually for a surplus that exists within my escrow account. How should this be accounted for in Stessa?

Thanks,

Laurence

2

@dugganrealestatellc Sure. Since this is not an actual expense or actual income, you’ll want to use the “Transfers” category or one of the escrow subcategories under “Transfers.” You’ll essentially reverse a portion of the original transaction that was entered when the escrow account was funded. The reversal should be a “Money In” transaction, assuming the original payment into escrow was tracked as “Money Out.”

This support article may also help: Split and Categorize Mortgage Payments

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3

@devin How can we treat any excess or surplus with escrow payments? My escrow statement shows my projected escrow payment of $450 with property taxes as $300, my insurance at $100 and I had an escrow shortage of $50. If I split my payment properly, I think I would want to record the actual projected $300 & $100 respectively and then label the shortage of $50 as a shortage? In the same tax year I had a new escrow statement change the breakdown so now the new escrow balance created a surplus so when I itemize taxes and insurance to the projected number they provided, I have a little extra left over from the escrow payment. How do I handle these surpluses and shortages?