Such actions are a matter of your loan contract and State law. Contact your legal counsel.
Borrower Consistently Past Due on Taxes (Escrow)
We have a borrower who is consistently past due on the taxes for the collateral on our loan. In the past we have advanced the amounts due on the principal balance and re-amortized the payments. Now we are discussing setting up an escrow account on this loan. Are we prohibited from advancing the initial deposit for the escrow account on the loan?
First published on 12/06/2015