Am I understanding correctly, the only time hazard insurance can be force-placed on an escrowed RE loan is if hazard insurance has been canceled (or was not renewed) for reasons other than nonpayment of premium charges or that the borrower's property is vacant? If so, the phrase "for reasons other than nonpayment"--does that mean you can force place if the insurance has been canceled for nonpayment of premium charges, or you cannot for reasons of nonpayment of premium charges. Trying to decide if this is a double negative sentence?

I think I didn't quite make myself clear on my OP--so I'll try to simplify my question: If an escrow account is -0- or negative balance, under what circumstances can the bank force-place hazard insurance? The negative balance in the escrow account was caused when the customer failed to make the mortgage payment, which would have included hazard insurance and taxes. Also, if RESPA only applies to consumer purpose mortgages, is it ok to force place hazard insurance in a situation as described above if the loan is business/commercial?

Do we have an escrow guru in the house?