A different (I hope) homeowners insurance question

[zpbk13]

I have searched the boards but did not see the answer to this question. This is the first month we have not paid our mortgage. Our homeowners insurance is paid from the escrow but without the April payment, the escrow will be a little short. What will Bank of America do with the money sitting in escrow for taxes and the insurance since it will be a little short?

I assume I should contact the insurance company and make payment arrangements with them. My State Farm agent has assured me that I can make monthly homeowner's payments (didn't know that before) like we do with our auto insurance. I just want to know if the mortgage company will pay what we have in the account to the city for taxes and to the insurance company for homeowners insurance. Thanks everyone!

[Mensa1]

Most ins policies that are paid thru escrow accts are paid annually to the ins co. You are paying monthly into a savings acct and when the end of the year comes there should be enough in the e acct to pay the next yrs premium in full; (in theory). Of course I am sure that some policies actually pay monthly but I think you will find that the exception to the rule. Usually when one buys a house they must procduce a 1 yr paid in advance homeowner policy and you begin paying immediately into escrow as stated above.

If it works as above then all you are doing is shorting the escrow acct; no biggie. The mtg lender will not let the house be w/o ins coverage, but as stated in other posts this may not include liability coverage for you. In reality if one is insolvent and not making mtg pymts, truthfully what difference does it make. Folks who are insolvent are not usually sued since an Atty isn't going to spend his time or money chasing someone that is not culpable.