Posted on: 11th Jan, 2012 08:15 am
I had a question as to my escrow. I own a home which is my homestead and duplex properties on the same lot that I purchased that I rent out. My contract with the lender is saying that the duplexes are investment property and that I'm not eligible to receive any escrow surplus funds due to It's investment property. That any surpls would have to go towards my principal balance. Is that correct what they are saying.
I have not heard of that. If no one on here has the answer, ask your lender. Send them a qualified written request, stating what your questions are. By law they must answer your request and send you proof of why they are claiming this escrow money. Have them send you what is in your loan docs that gives them the power to do so. I have only heard of rent loss, where when in default, the lender may take and keep rental payments, to satisfy the loan payments.