Are the number of months for property taxes and home insurance that go into escrow negotiable with the lender or is that a fixed amount? I see that lenders are putting down what appears to be 12-months. I would like to know if the number of months are ever negotiated down. ?? It's for a residential single family home. I just wondering if that is something a real estate lawyer might know.
Answer
Number of months to be escrowed, to my knowledge, is not negotiable. However, depending upon your loan, you can possibly negotiate whether or not you need to escrow both or either of the real estate taxes and/or home owners insurance. Some banks do allow a borrower to pay these items directly, and do not mandate they be escrowed. However, if they are to be escrowed, all banks use 12 months, again, to my knowledge.
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