When a lender requires tax and/or insurance amounts to be deposited with the lender by placing the monies in an escrow account, a "Budget Mortgage or Deed of Trust" occurs. These escrow accounts may also be referred to as what?

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Ritter

Business

16 March, 00:45

When a lender requires tax and/or insurance amounts to be deposited with the lender by placing the monies in an escrow account, a "Budget Mortgage or Deed of Trust" occurs. These escrow accounts may also be referred to as what?

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Answers (1)

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Stacy Zuniga · Answer 1

The correct answer to the following question is impound or reserve accounts.

Explanation:

Here the escrow account would also be know as impound or reserve account, and in this account a person would be required to put funds in this account (given the person has made a minimum down payment). Here the funds belong to the person but the lender would use this funds to make payments on property taxes, homeowner's or mortgage insurance.