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Updated almost 9 years ago on . Most recent reply

User Stats

43
Posts
2
Votes
Jackie F.
  • Rental Property Investor
  • Ft. Lauderdale, FL
2
Votes |
43
Posts

Lender Requiring 12 Months Escrow for Taxes & Insurance

Jackie F.
  • Rental Property Investor
  • Ft. Lauderdale, FL
Posted

My current lenders for a primary residence I am purchasing is requiring 12 months of escrow UP FRONT AT CLOSING for taxes and insurance PLUS the normal contribution going forward.

I have a shortsale on credit report dating back to Dec 2013 so I am using a subprime lender and this is one of their requirements.

My question is, is this even allowed?  I am scheduled to close on 3/25.  By the time my property taxes are due, I will have approximate 21 months of property taxes and insurance funds in escrow.  Is this allowed by RESPA?

Most Popular Reply

User Stats

467
Posts
107
Votes
Charmaine M.
  • Queens NY, NY
107
Votes |
467
Posts
Charmaine M.
  • Queens NY, NY
Replied

@Jackie F.. I recently closed on my personal residence and i had to pay 12mths taxes and insurance up. If i am not mistaken i think this is normal. I may be wrong. 

I found out later( this week actually) that they pay taxes and insurance form the second year on.

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