The guy at the title company said that I would actually have a surplus in my escrow acct. My bank paid my taxes in October and I paid taxes in July when I closed.
What I interpret from what you just wrote is that the title company put the money for the accrued taxes (that the seller owed) into the newly created escrow account.
Then, they began immediately taking out money for your future tax liabilities and placing that in your escrow account as well.
You “paid your taxes” into your escrow account starting day one. They charge you in advance for your monthly taxes due so there will be enough to cover everything when the (arrears tax) bills come due. And in October, your escrow manager disbursed the accumulated tax portion of your escrow to the taxing authority.