I hope you BOL experts can help me.
If a loan is seriously more than 30 days past due, and it is unlikely that the borrower will ever catch up, can the FI use the escrow funds to satisfy the delinquency?
Also on the same account, if there isn't enough escrow funds to pay the upcoming real estate tax bill, is the FI obligated to make the tax payment knowing it will never be recovered? If so, for how long?
Thanks for any help you can give me.
Finally, if a loan is current, is it permissable to use the funds in the escrow account to make the final loan payment on a loan that is being paid off?
The views, opinions, & judgments expressed here are mine. The contents have not been reviewed or approved by my employer.