An escrow account refers to an account held in the name of the borrower which is returnable to the borrower on the performance of certain conditions.
This form is a generic example that may be referred to when preparing such a form for your particular state. It is for illustrative purposes only. Local laws should be consulted to determine any specific requirements for such a form in a particular jurisdiction.
The Arizona Agreement for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender is a legal document that outlines the terms and conditions for the borrower to directly pay their taxes, assessments, and/or insurance premiums rather than having the mes crowed by the lender. This agreement is common in Arizona and is designed to provide flexibility for both the borrower and the lender. By waiving the requirement for escrow, borrowers can have more control over the payment process and potentially save on additional escrow fees. There are several types of Arizona Agreement for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender that are relevant to different situations: 1. Arizona Agreement for Direct Payment of Taxes — This type of agreement specifically focuses on the borrower's responsibility to directly pay their property taxes. It outlines the payment schedule, any penalties for late payment, and the consequences if the borrower fails to fulfill their tax obligations. 2. Arizona Agreement for Direct Payment of Assessments — This agreement pertains to any special assessments imposed on the property, such as homeowner association fees or municipal assessments. It details the arrangement for the borrower to handle the assessment payments directly without involving the lender. 3. Arizona Agreement for Direct Payment of Insurance — This type of agreement specifies how the borrower will handle the payment of their property insurance premiums. It typically includes information about the insurance policy, coverage amounts, and the borrower's duty to maintain adequate insurance. Each of these agreements includes a waiver of escrow provision that eliminates the need for the lender to hold and disburse funds for taxes, assessments, and/or insurance on behalf of the borrower. By signing this waiver, the borrower assumes full responsibility for ensuring timely payment of these obligations.
