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#2084720 - 06/22/16 08:37 PM Escrow for HPML 40 acres
morirse de risa Offline
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Joined: Feb 2009
Posts: 238
Midwest
Customer has 2 houses sitting on 40 acres. One is a mobile home that is empty, the other is the house they are remodeling. There is enough value on the 40 acres that we are only taking the acres as collateral, and neither house. However, no survey has been done to separate the properties from the acreage.
1. Escrow is required, but is it just required on the house taxes/insurance, or on all the 40 acres as well?
2. Would we need to do a survey?

Thank-you for your help.

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Escrows on Higher-Priced Mortgages
#2084723 - 06/22/16 08:41 PM Re: Escrow for HPML 40 acres morirse de risa
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,333
Cape Cod
If the house is part of the 40 acre parcel, and the parcel is assessed as one piece, you can't separate the taxes for the house from the taxes for the acreage -- you'll have to escrow the whole thing.
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#2084738 - 06/22/16 09:10 PM Re: Escrow for HPML 40 acres morirse de risa
morirse de risa Offline
100 Club
Joined: Feb 2009
Posts: 238
Midwest
OK thanks for your help!

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#2084742 - 06/22/16 09:13 PM Re: Escrow for HPML 40 acres morirse de risa
morirse de risa Offline
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Joined: Feb 2009
Posts: 238
Midwest
One more follow-up question - if we are able to get them to separately assess the acres and the houses, could we just escrow on the houses?

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#2086029 - 06/29/16 11:48 PM Re: Escrow for HPML 40 acres morirse de risa
MAFCCons Offline
Member
Joined: Nov 2014
Posts: 94
Question - there is an exemption listed in 1026.35(b)(2) that states escrows are not required on "insurance premiums the consumer purchases that you don't require". If the property were appraised as land only with no value given to either house and is valuable enough that as a lender, the dwelling is not needed for the loan to be approved, could that exemption be used?

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#2086049 - 06/30/16 12:11 PM Re: Escrow for HPML 40 acres morirse de risa
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 77,239
Galveston, TX
"insurance premiums the consumer purchases that you don't require"

Would you mind sharing where 1026.35(b)(2) says this???

Even if you think it is there, how you value your collateral really has no bearing.
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