Posted by Randy on October 01, 2003 at 15:46:12:
When insurance and taxes are ?escrowed? by a lender that simply means that lender has a account ? maybe a trust account those funds are deposited in each month. The benefit is the homeowner will not get caught short when the tax bill or insurance bill arrives. Escrowing these funds is not required ? it is a good idea to do so, and some lenders make it their policy to. Your take on the landlord policy is correct.