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Tammy Said:

Shuld there be an escrow account if the insurance and taxes are being paid by me and not the mortgage company

We Answered:

The mortgage, insurance etc. should be payed from the Escrow account.

But generally the way it works is that the home owner pays a monthly payment that includes mortgage, insurance etc. The portion for insurance accumulates in the escrow account and then is dispursed in a lump sum to pay the insurance.

Here's an example. You make a monthly payment of $1000 on a $700 mortgage. $300 is taxes, insurance etc. and accumulates in the escrow account. At the end of the year there is $3600 in the escrow account. Taxes and insurance come to $3000, and you receive a $600 refund.

At some point the money in the escrow account is used to pay insurance and taxes. The law requires that you have access to info on that escrow account, to see how much is in the account and what payments have been made.

Dan Said:

If property is behind on payments, has been vandelized, can Lender file insurance claim and collect check?

We Answered:

The lender has to protect their investment, which is their loan. The collateral (the building) also needs to be protected. Your loan documents states what your responsibilities are, especially as it relates to how the property is maintained and repayment of the loan. When you get the loan, you also agree to maintain insurance on the property; the lender has the right (and obligation to their investor) to place insurance on the property should yours lapse.

The check for damages goes to them; if the mortgage has not been paid, and you are in default--well, your lender did what they were supposed to to protect their investment. In the event the property goes to foreclosure, they're stuck with a vandalized building that they have to sell to recover their loan and expenses.

The check goes to them; as with any other insurance check, it will go toward making repairs to the property that resulted from the vandalizing. But, to be sure, you can contact the insurance agency that has the policy or make a written request for information from your lender.

Laurie Said:

My mortgage was bought out, now my insurance company didn't get paid?!?

We Answered:

Call your agent to explain what happened. Next, contact the escrow company who failed to mail the premium which was most collected at closing.

The loan wouldn't have closed without the insurance being paid...you escrow company should have cut the check...contact them.