Posted by wwjmaj on October 21, 2003 at 15:28:23:
Why do you want to pay their premiums if you don’t have to? Why do you want to “account” for the insurance escrow and make sure you properly apply payment to late fees, insurance, interest and principal? If you are the endorsed lien holder you receive notice (in Michigan 30 days prior to cancellation) of nonpayment and then you can decide whether to take back the home for nonpayment of insurance before it lapses or pressure them to pay. Also if the insurance is yours, there will probably be no coverage for their contents in the event of theft or fire.
The simpler the accounting, the less bills I have to pay the better I like it BUT make sure you get that binder AND you respond to those thirty day cancellation notices.