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.
Where is Escrow?? - Posted by Paul
Posted by Paul on October 01, 2003 at 15:05:41:
If i were to take a house Subject To and the sellers tell me taxes and insurance are escrowed. Does this mean there is a third party set up that recieves a full payment PITI and then distributes the funds to the Lender, Insurance Comp
,and holds the rest to be paid until property tax is due then would distribute the tax savings at this time?
Is PITI included as the amount on the coupon book? How does escrow usually work and were is it? Who would be in charge since this would who i would be talking to, too make sure i know what funds are in it.
And also if i were to keep the old insurance policy in place and also get a new landlord policy would i just continue to pay the old policy the same way thru escrow and pay the new policy myself?
THANKYOU
Re: Where is Escrow?? - Posted by Bill H
Posted by Bill H on October 01, 2003 at 16:24:57:
>>>>And also if i were to keep the old insurance policy in place and also get a new landlord policy would i just continue to pay the old policy the same way thru escrow and pay the new policy myself?<<<<<
One small (Large) problem here…if you are not on the “Old Policy” as an insured…in event of damage…you will NOT collect.
You should insure that you are covered by both the old policy and whatever additional insurance you place in effect.
Good Luck,
Bill H