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Collecting for Insurance

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Question: 
When closing a real estate purchase can I collect more then 2 months insurance, or is 2 months the maximum?
Answer: 

If you are referring to the amount of cushion on an escrow, you can collect whatever amount you need to make the payments plus 2 months extra. Refer to Section 3500.17 of RESPA for more information.

First published on BankersOnline.com 10/20/03

First published on 10/20/2003

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