I hear you on the “just another number” feeling with big banks. I’ve actually had a small escrow company catch a tax payment error that my bank totally missed, but it took a lot of back-and-forth to get it fixed. Here’s how it played out for me:
1. Noticed the mistake myself—escrow overpaid property taxes.
2. Called the big bank, got bounced around, no real help.
3. Small escrow outfit stepped in, tracked down the overpayment, and coordinated with the county to get it refunded.
It was a hassle, but they did go the extra mile. That said, if their one expert had been out, I’d probably still be waiting. It’s kind of a toss-up—personal touch vs. reliability. I guess it depends how much patience you’ve got for chasing people down.
Escrow Accounts—Better Through Banks or Independent Services?
That’s a familiar story. I’ve seen both sides play out with clients, and honestly, neither is perfect. There was this one time a client of mine had their taxes nearly double because the bank’s escrow department misread a supplemental bill as an annual one. The client got a notice from the county about a pending lien, but the bank’s customer service just kept reading off their script—“Your account is current, sir.” Super frustrating.
Here’s how we got it sorted:
1. My client flagged the issue after getting the county letter.
2. We tried calling the bank, but every call felt like starting over.
3. Out of desperation, I reached out to a local escrow company I’d worked with before. They weren’t even handling this particular account, but they walked us through what to ask for and how to get the right department on the phone.
4. After about three weeks (and way too many phone calls), the bank finally admitted the error and fixed the payment.
I get why people like the “big name” banks—they’re supposed to be reliable, right? But in my experience, those smaller outfits actually pick up the phone and remember your name. The catch is, if their one go-to person is out sick or on vacation, things can stall fast. It’s kind of a trade-off: with banks you get systems and backup, but you’re also just another file in the cabinet. With independents, it’s more personal, but sometimes you’re at the mercy of their bandwidth.
If I had to pick, I’d lean toward independent escrow companies for trickier or high-touch situations—like weird property tax stuff or unique title issues. For straightforward deals, banks are fine, just... be ready to advocate for yourself if something goes sideways.
Funny thing is, even after all these years, I still get surprised by how much legwork falls on the homeowner (or their agent) when something goes wrong. You’d think with all the tech and automation, these things would be smoother by now. Maybe someday...
Banks love to talk about their “systems,” but when you’re the one stuck on hold for the third time in a week, those systems don’t feel so reliable. I’ve had projects where the bank’s escrow department couldn’t even tell me which tax bill they’d paid—just a generic “it’s handled.” Meanwhile, the county’s threatening a lien and I’m left playing detective.
Honestly, I’ll take a smaller escrow company any day when things get complicated. At least with them, you can usually get someone who actually knows what’s going on. Sure, if their main person is out, things might slow down, but at least you’re not lost in a call center maze.
For cookie-cutter deals? Fine, let the bank handle it. But if there’s anything unusual—split lots, weird assessments, or just a property that’s not textbook—I’d rather deal with someone who actually cares if I call back.
Funny thing is, with all the tech hype, I still end up faxing documents half the time. Maybe we’ll get there someday... but I’m not holding my breath.
- I get where you're coming from—nobody likes being bounced around a call center, especially when it’s something as stressful as property taxes. But I’ve actually had the opposite experience a couple times.
- With banks, at least there’s a paper trail and some accountability. When I used a small escrow outfit for a tricky property split, things got personal, sure, but also a bit... informal? The owner went on vacation and suddenly nobody could find my file.
- Banks might be slow, but I’ve found they’re less likely to “forget” something critical. Plus, if there’s ever a dispute, you’ve got more leverage with a big institution than with a mom-and-pop shop that might just close up one day.
- The tech thing is real though—why are we still faxing anything in 2024? Half the time I end up scanning stuff with my phone and emailing it anyway.
- Not saying banks are perfect (they’re definitely not), but sometimes the bureaucracy is there for a reason. At least you know someone’s job is on the line if they mess up.
