Q. When I purchase a property subject to I get my own insurance and cancel the existing insurance, correct? How do you cancel the existing escrowed insurance and replace it with your insurance? Do you put your new insurance in escrow and how do you do that? Or do you just pay a separate payment to your insurance?

When you receive the property tax bill from the county are you suppose to inform the mortgage company of that new amount? How does the mortgage company know what the taxes are each year when they change?

Since both insurance and property taxes are escrowed and a part of your monthly payment, how

does the payment get changed when the values of either taxes/insurance change?

A. Just have your agent write a new policy for you using the checklist from the



Land trust training package. They will send the declarations page to the mortgage company showing that a new policy is in place for that mortgage. The new policy should now be paid out of the escrow account.

Different mortgage companies handle property taxes differently. Most companies require you to fax or mail the tax bill to them when you receive it. They will then pay it. Some mortgage companies can automatically get the tax bill from the county.

The mortgage company will adjust the escrow to reflect changes in the insurance and taxes. They will either increae the payment or provide a refund if you overpaid. It seems as if ours always increases.

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