Posted on: 02nd Feb, 2011 07:30 am
Hello everyone!
I was wondering if it is possible to escrow for taxes and insurance as part of an REM? I understand that the borrower must pay their taxes and insurance or risk loosing the loan. Would any servicers allow a monthly payment escrow payment and they would then be responsbile for paying the town and insurance company? Or is it possible for the servicer to pay the taxes and insurance and capitalize the amount on the principal balance? If they don't escrow they would require the taxing authority and insurance companies to notify them in case the borrower didn't pay, correct?
I was wondering if it is possible to escrow for taxes and insurance as part of an REM? I understand that the borrower must pay their taxes and insurance or risk loosing the loan. Would any servicers allow a monthly payment escrow payment and they would then be responsbile for paying the town and insurance company? Or is it possible for the servicer to pay the taxes and insurance and capitalize the amount on the principal balance? If they don't escrow they would require the taxing authority and insurance companies to notify them in case the borrower didn't pay, correct?
Hi danp!
Welcome to forums!
You should have a word with the lender in order to set up an escrow account and deposit the insurance premiums and property taxes in that account. The lender will then pay off the dues to the insurance company on time.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You should have a word with the lender in order to set up an escrow account and deposit the insurance premiums and property taxes in that account. The lender will then pay off the dues to the insurance company on time.
Feel free to ask if you've further queries.
Sussane