We have a customer who's insurance has been cancelled. We are currently escrowing for the premiums. The loan amount is very low and our bank does not require insurance on this loan any longer. We don't have the borrower's phone number. What would our next step be? A letter to the customer? Close and refund the escrow account? You help would be appreciate. Thanks

This is a variation of "You can pay me now, or you can pay me later." In this case "me" is your borrower. You should attempt to contact him and discuss the matter and his options. Then start the ball rolling on refunding the escrow, if that's where the discussion takes you. "Pay me later" refers to the fact that at your next escrow analysis, you'll have to refund the escrow balance and end the insurance escrow payment if there's no billed insurance amount.

Thank you.