How does Cenlar handle escrow accounts for property tax?

Cenlar manages escrow accounts for property taxes as part of their mortgage servicing practices. When a borrower has an escrow account, Cenlar collects a portion of the monthly mortgage payment to cover property tax and insurance expenses. The idea is to spread these large payments over the year, making it easier for homeowners to budget their expenses. Cenlar estimates the total annual property tax obligation and divides that amount by the number of months in a year, typically twelve. This calculated monthly amount is then added to the mortgage payment. Cenlar is responsible for ensuring that the property taxes are paid on time from the funds accumulated in the escrow account. They will also send statements to borrowers, detailing the escrow balance and any adjustments due to changes in property tax rates or insurance premiums. Furthermore, if there is a surplus or shortage in the escrow account, Cenlar will provide an annual analysis, informing borrowers of the necessary adjustments to their monthly payments. This transparency helps homeowners stay informed about their escrow accounts throughout the year. For the most current information regarding escrow management, borrowers may want to visit the Cenlar website directly.