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Updated almost 9 years ago,
Loan company forcing you to pay for taxes on a P & I loan.
Hello - not sure if this is the right forum but will ask anyway. I have a principal & interest loan on one of my investment homes. I pay the tax and insurance which is clearly stated in the note. In the 9 years since obtaining the loan, it has been transferred to 4 loan companies. The latest acquired the loan in December. The real estate taxes are due by end of March. I plan on paying next week however I received a letter Friday that the new loan company paid the taxes and are asking for this years and next years money. I called and told them this is a P&I loan only and reassignment does not change the original terms of the loan. Can they force me to escrow tax money? Should I pay the tax anyway? Any advice would be appreciated. Thank you.