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We just closed on a VA streamline refi on the 27th and after doing a little poking around on my old mortgage company's site (mainly to see that the payoff went through) I have a question. My broker explained this to me at one point but the holidays seem to have driven all memory of it from my head.

Ok, we have an escrow account like most people. Our taxes are due in October but somehow (beats me) aren't "late" until February. So even though our escrow account was fully funded, because the broker wasn't able to confirm the taxes had been paid (and at that point, they had not been), we had to have this full year's taxes and a partial for next year in the deal.

So basically we paid the taxes in full for this year just in case our old mortgage company hadn't paid them yet. Well, it turns out that they did pay them, basically a few days before closing. So our old company paid them and we paid them as well in the closing.

My question is - what happens to the extra payment? Does the new mortgage company refund them to us (if, say, they haven't zapped them to the county clerk yet)? If the county gets one check for them then a second one, does it refund them to us or the mortgage company?

Ultimately, though, that chunk of money would make its way back to us, either directly or in the form of being applied to the balance of the loan or being put into the escrow account, right?

I'll be asking our broker this week - just figured some of you guys might have enough experience with this sort of thing to make an educated guess. Thanks for your time!
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