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#1340852 - 02/10/10 03:32 PM Escrow and Past Due Account
elebra Offline
100 Club
Joined: Apr 2009
Posts: 108
We don't escrow now and have had this question come up in the management meetings to get ready for 4-1-10. Help me if you can...

If a loan is past due when the taxes and/or insurance come due, is the Bank still required to pay those items?

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Lending Compliance
#1340874 - 02/10/10 03:43 PM Re: Escrow and Past Due Account elebra
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,532
Bloomington, IN
See 3500.17(k). As long as the payment is 30 or less days past due you would be required to pay the scheduled disbursements when they come due.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#1340884 - 02/10/10 03:50 PM Re: Escrow and Past Due Account Dan Persfull
David Dickinson Offline
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David Dickinson
Joined: Nov 2000
Posts: 18,763
Central City, NE
Think about this from a S&S view: Yes, they are past due, but do you want to compound the issue by not properly insuring the building or allowing someone to sneak in ahead of you by paying the taxes?
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David Dickinson
http://www.bankerscompliance.com

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