Escrow 101 – Part 1 of 3

By Michael J. McCormick, Esq., McCalla Raymer Leibert Pierce, LLC (Roswell, GA)

Introduction

Several court decisions have discussed a mortgage servicer’s obligations with regard to escrow accounts after the filing of a bankruptcy. In addition, borrowers and their attorneys often have difficulty understanding the numbers contained on an escrow analysis. This article is an update to primer article initially written in 2009 that outlined the proper steps in conducting an escrow analysis, as well as some of the servicer’s obligations and options for having a borrower cure an escrow shortage or escrow deficiency.

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