From: vze8f3tq@verizon.net (v)
Newsgroups: misc.consumers.house
Subject: Re: Does Homeowners Insurance have to be Escrowed?
Date: Sat, 24 Apr 2004 23:45:19 GMT

On 23 Apr 2004 18:43:10 -0700, someone wrote:


>Is it necessary for the finance company to hold an amount in escrow -
>even when I pay the insurance on my own?

"Necessary" to whom?

It sure isn't necessary to you.

However, you needed to get this agreed to before you signed the loan,
because if its a condition of the deal then it may indeed by necessary
to THEM.

BTW, what (if any) was the initial escrow funding requirement in
relation to the insurance?  It may be that they know/assume this
year's insurance was/is already paid for, and there was either nonoe
or only a part year's initial insurance balance in the new escrow
account, so that by the time the insurance comes up for renewal, there
will be a full year's payment there, and at that time you should
cancel your autodraft and have the bill sent to the finance company.
So that you are NOT "both" paying the same insurance.

DO "audit" your escrow account, there are indeed screwups.  But don't
automatically assume evil, until you actually understand what is going
on.

-v.