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When utilizing a Loan Modification option, can a lender escrow advance for Homeowners Association fees?

April 26, 2017Association escrow fees Homeowner Lender loan modification option utilizing

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When utilizing a Loan Modification option, can a lender escrow advance for Homeowners Association fees?

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HUD Handbook 4330.1 REV-5, Paragraph 2-1, Section B, Escrow Obligations states: Mortgagees must also escrow funds for those items which, if not paid, would create liens on the property positioned ahead of the insured mortgage. This means any back association dues or taxes must be brought current by your lender.