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 Colorado 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 agreed upon between a borrower and a lender in the state of Colorado regarding the payment of taxes, assessments, and insurance directly by the borrower, without the involvement of an escrow account. This agreement becomes relevant when a borrower wants to take responsibility for paying their property taxes, assessments, and insurance premiums directly to the respective authorities or insurance companies. In such cases, the lender must agree to waive the requirement of an escrow account, which is typically set up to hold funds for these expenses on behalf of the borrower. By entering into this agreement, both the borrower and the lender acknowledge and agree to the following terms: 1. Taxes, Assessments, and Insurance: The borrower agrees to pay all property taxes, assessments, and insurance premiums directly to the relevant authorities or insurance providers in a timely manner. 2. Waiver of Escrow Account: The lender agrees to waive the requirement of an escrow account for the payment of taxes, assessments, and insurance. 3. Responsibility: The borrower acknowledges that they are solely responsible for ensuring all payments are made on time and in full. Failure to make these payments may result in penalties, interest charges, or even foreclosure. 4. Notification: The borrower agrees to promptly provide the lender with copies of all tax bills, assessment notices, and insurance policies, ensuring that the lender is aware of the amounts due and coverage maintained. 5. Default: If the borrower fails to make any of the required payments, the lender may have the right to impose penalties, initiate foreclosure proceedings, or require the establishment of an escrow account. It is important to note that different types of Colorado Agreements for Direct Payment of Taxes, Assessments, and/or Insurance and Waiver of Escrow to be held by Lender may exist depending on the specific requirements of the lender or the circumstances of the loan. These agreements may vary in terms of conditions, provisions, or specific obligations imposed on the borrower.
