Legal Question in Real Estate Law in Maryland
Our mortgage loan was recently sold to another lender. We have had many problems with this new lender, the most recent being the late payment of our homeowners insurance. Are we required to escrow homeowners insurance and property taxes through this mortgage lender, or can we make these payments on our own? Thanks in advance!
1 Answer from Attorneys
Typically you must do the escrow through your lender if your mortgage is 80% or more of the value. However, if your lender so allows, it often gives the borrower much greater flexibility (and allows you more control) to take this out of escrow. It is not unusual for a servicer to wait until the last possible moment to pay and some borrowers complain that their servicer calculates the escrow amount wrong. Particularly if you are below 80% LTV, it makes sense to inquire.
Since this is a lender decision you should call your loan servicer (who you send the mortgage payments to) and ask if you can take off the escrow so that you handle it yourself.
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