It is that time of year again when East Wisconsin Savings Bank starts preparing to pay real estate taxes out of mortgage loan escrow accounts. Here are some helpful hints to ensure that everything goes smoothly.
- Know what tax option you are. The state of Wisconsin offers 3 different tax options. When your loan was originated there were options provided to you, the escrow account disclosure indicates what option you have chosen. These options can be changed by you signing a change form.
- Option 1 - We will send you a check for the balance in you escrow account made payable to both yourself and the municipality by December 20th. You will be required at that point to deliver this check to your municipality. You will need to make up any shortages with the municipality as well as receiving any refunds.
- Option Two- You bring in your tax bill to any of our branch locations and pay any shortage. Your tax bill will be paid in full directly to the municipality By December 31st if your tax statement is received no later than December 24th.
- Option Three- You bring in your tax bill to any of our branch locations and indicate that you would like it paid for next tax year. We collect any shortages and pay your taxes in full directly to the municipality by January 31st.
Please be aware if you do not bring in your tax bill for option two before the last week in December we will locate your tax bills from the municipality websites and pay your taxes to the municipality for next tax year by January 31st.
- Your escrow account is required to go through a yearly escrow analysis. This takes the full amount of your prior year tax bill and recalculates your new payment amount for the next year. This will also calculate refunds for excess funds in your account. The escrow analysis will take place at the end of January, refund checks will be mailed in February and new payments will start in March.
- If you do not have an escrow, if you are an Option 1, or choose to stop by one of our branches and take the tax bill in yourself please remember to provide us a paid receipt. We track all mortgage loans to verify the taxes are paid to the municipalities’ each year. We are required to monitor and keep track of any delinquent real estate taxes.
- Please note, in most cases you are not required to have an escrow account. If your escrow account is not required, you may request in writing, your escrow be cancelled. Some members prefer to manage their own real estate taxes, some by opening deposit accounts and contribute throughout the year.
Remember our friendly staff is available to assist you and answer any questions you may have about real estate taxes and all your banking needs.