2007-02-23 06:06:33 · 4 answers · asked by Mary C 1 in Business & Finance ➔ Personal Finance
the purpose of the escrow is for paying insurance and taxes. However, if you become really delinquent, then I believe the lender is allowed to keep that money to use for paying themselves back.
Of course, they would probably not have enough, but if you default, then this money probably does become theirs. After all, your house then becomes their house and they must pay for insurance and taxes until they can sell it.
If you're asking b/c you a just a small amount on your mortgage, then no - the lender will still require you to pay the mortgage and then will refund the escrow balance to you after the mortgage has been paid off.
2007-02-23 06:19:10 · answer #1 · answered by Matt K 4 · 0⤊ 0⤋
no! But if you are paying them off some a very few will add what is in escrow to pay taxes and insurances and reduce your actual pay off demand. Most others will refund you that account within 30 days of pay off
2007-02-23 06:13:22 · answer #2 · answered by golferwhoworks 7 · 0⤊ 0⤋
The escrow account is used to pay property taxes and insurance. These amounts will change every year, so your payment will be adjusted annually to account for the overages or shortages.
2007-02-23 06:13:52 · answer #3 · answered by ? 4 · 0⤊ 0⤋
will wells fargo let you use escrow balance to pay off mortgage
2016-01-20 08:36:34 · answer #4 · answered by Anonymous · 0⤊ 0⤋