Pay Attention to Escrow Accounts

Section 6 of The Real Estate Settlement Procedures Act, also known as RESPA states that, lenders are required to make escrow disbursements on time! I recently experienced the lender not paying my insurance premium on time. I was made aware of this problem in a letter from the insurance company stating, that if I did not make a payment immediately my property would be uninsured. Not willing to take the risk of having to deal with the bureaucracy of a servicing company (this is who collects the money on behalf of the lender) I chose to pay the insurance premium. Then wait for a refund once I got the situation straighten. Here is how this situation could have potentially escalated into a costly mistake had I:
• Not paid attention to my escrow account,
• Read my mail or
• Not been in a financial position to pay the insurance premium.
The lender could have:
• Charged my escrow account with late fees,
• Hit me with a higher insurance premium amount through their own insurance carrier or
• Positioned me to be uninsured during the time a pipe bust costing thousands in repairs.
To take part in the Make No Mistakes™ System email me at Melissa@MakeNoMistakes.com.