buyer doesn't want to pay escrow for taxes and Insurance

[Account Closed]

I have a buyer that has an escrow account set up with Evergreen note servicing. It has been a real pain getting the account set up. Now the buyers are trying to just send in their P&I payment. I Have an underlining loan that escrows so I have to escrow my buyers taxes and insurance as well.  What recourse do I have if the buyer refuses to pay the escrow portion?

[Bill Gulley]

Escrows are separate agreements under a note and or deed of trust. Sounds like you have a second mortgage as a wrap or Sub-To, don't know, but if it is owner occupied they should have been given an estimate of escrows required at settlement, such being disclosed when making the note. 

Failing to pay taxes or insurance is generally not an event of default under a deed of trust to accelerate the note, it is a default but not one to foreclose on as the lender may advance costs under the agreement and charge the highest legal rate or generally the note rate as advances under the loan. Failure to pay P&I is a default in payment. States are different and so are judges. 

A servicer can only require what the terms of the note and trust dictate. 

There can also be an error in  your installment agreement, stating the underlying mortgage without including taxes and insurance, if any. 

Sounds too, like the escrows you may have had were not accounted for in your settlement as those would be assigned for the benefit of the buyer since the future escrows would be paying sums due from them. 

I suggest you let the servicer take care of it and stay out of the matter, you making demands that were not agreed to or not properly accounted for can backfire on you. Let the pros take care of it and if they can't collect it, lesson learned. Might talk to the folks that charged you to put that together for you, if you did have it done. Good luck! :)