Common use of Monthly Payments For Taxes And Insurance Clause in Contracts

Monthly Payments For Taxes And Insurance. (a) Xxxxxxxx’s Obligations. I will pay to Lender all amounts necessary to pay for taxes, assessments, water charges, sewer rents and other similar charges, ground leasehold payments or rents (if any), hazard or property insurance covering the Property, flood insurance (if any), and any required Mortgage Insurance, or a Loss Reserve as described in Section 10 in the place of Mortgage Insurance. Each Periodic Payment will include an amount to be applied toward payment of the following items which are called “Escrow Items:” (1) The taxes, assessments, water charges, sewer rents and other similar charges, on the Property which under Applicable Law may be superior to this Security Instrument as a Lien on the Property. Any claim, demand or charge that is made against property because an obligation has not been fulfilled is known as a “Lien;” (2) The leasehold payments or ground rents on the Property (if any); (3) The premium for any and all insurance required by Lender under Section 5 of this Security Instrument; (4) The premium for Mortgage Insurance (if any); (5) The amount I may be required to pay Lender under Section 10 of this Security Instrument instead of the payment of the premium for Mortgage Insurance (if any); and (6) If required by Lender, the amount for any Community Association Dues, Fees, and Assessments. After signing the Note, or at any time during its term, Lender may include these amounts as Escrow Items. The monthly payment I will make for Escrow Items will be based on Lender’s estimate of the annual amount required. I will pay all of these amounts to Lender unless Xxxxxx tells me, in writing, that I do not have to do so, or unless Applicable Law requires otherwise. I will make these payments on the same day that my Periodic Payments of principal and interest are due under the Note. The amounts that I pay to Lender for Escrow Items under this Section 3 will be called “Escrow Funds.” I will pay Lender the Escrow Funds for Escrow Items unless Lender waives my obligation to pay the Escrow Funds for any or all Escrow Items. Lender may waive my obligation to pay to Lender Escrow Funds for any or all Escrow Items at any time. Any such waiver must be in writing. In the event of such waiver, I will pay directly, when and where payable, the amounts due for any Escrow Items for which payment of Escrow Funds has been waived by Lender and, if Lender requires, will promptly send to Lender receipts showing such payment within such time period as Lender may require. My obligation to make such payments and to provide receipts will be considered to be a promise and agreement contained in this Security Instrument, as the phrase “promises and agreements” is used in Section 9 of this Security Instrument. If I am obligated to pay Escrow Items directly, pursuant to a waiver, and I fail to pay the amount due for an Escrow Item, Lender may pay that amount and I will then be obligated under Section 9 of this Security Instrument to repay to Lender. Lender may revoke the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 of this Security Instrument and, upon the revocation, I will pay to Lender all Escrow Funds, and in amounts, that are then required under this Section 3. I promise to promptly send to Lender any notices that I receive of Escrow Item amounts to be paid. Lender will estimate from time to time the amount of Escrow Funds I will have to pay by using existing assessments and bills and reasonable estimates of the amount I will have to pay for Escrow Items in the future, unless Applicable Law requires Lender to use another method for determining the amount I am to pay. Lender may, at any time, collect and hold Escrow Funds in an amount sufficient to permit Lender to apply the Escrow Funds at the time specified under RESPA. Applicable Law puts limits on the total amount of Escrow Funds Lender can at any time collect and hold. This total amount cannot be more than the maximum amount a lender could require under RESPA. If there is another Applicable Law that imposes a lower limit on the total amount of Escrow Funds Lender can collect and hold, Lender will be limited to the lower amount.

Monthly Payments For Taxes And Insurance. (aA) Xxxxxxxx’s Obligations. Borrower's Obligation I will pay to Lender all amounts necessary to pay for taxes, assessments, water charges, sewer rents frontage charges and other similar charges, ground sewer rents, leasehold payments or ground rents (if any), hazard or property insurance covering the Property, and flood insurance (if any). If Lender required mortgage insurance as a condition of making the loan that I promise to pay under the Note, (i) I also will pay to Lender all amounts necessary to pay for mortgage insurance, and any required Mortgage Insurance(ii) if, or a Loss Reserve as described in Section 10 in the place under Paragraph 8 below, instead of Mortgage Insurance. Each Periodic Payment will include an amount to be applied toward payment of the following items which are called “Escrow Items:” (1) The taxes, assessments, water charges, sewer rents and other similar charges, on the Property which under Applicable Law may be superior to this Security Instrument as a Lien on the Property. Any claim, demand or charge that is made against property because an obligation has not been fulfilled is known as a “Lien;” (2) The leasehold payments or ground rents on the Property (if any); (3) The premium paying for any and all mortgage insurance required by Lender under Section 5 of this Security Instrument; (4) The premium for Mortgage Insurance (if any); (5) The amount I may be am required to pay Lender under Section 10 an amount equal to the cost of this Security Instrument instead of the payment of the premium for Mortgage Insurance (if any); and (6) If required by Lendermortgage insurance, the amount for any Community Association Dues, Fees, and Assessments. After signing the Note, or at any time during its term, Lender may include these amounts as Escrow Items. The monthly payment I will make for Escrow Items will be based on pay this amount to Lender’s estimate of the annual amount required. I will pay all of these amounts to Lender unless Xxxxxx Lender tells me, in writing, that I do not have to do so, or unless Applicable Law requires the law required otherwise. I will make these payments on the same day that my Periodic Payments monthly payments of principal and interest are due under the Note. The amounts that I pay to Lender for Escrow Items My payments under this Section 3 Paragraph 2 will be for the items listed in (i) through (iv) below, which are called “Escrow Funds.” I will pay Lender the Escrow Funds for Escrow Items unless Lender waives my obligation to pay the Escrow Funds for any or all "Escrow Items. Lender may waive my obligation to pay to Lender Escrow Funds for any or all Escrow Items at any time. Any such waiver must be in writing. In the event of such waiver": (i) The estimated yearly taxes, I will pay directlyassessments, when water frontage charges and where payable, the amounts due for any Escrow Items for which payment of Escrow Funds has been waived by Lender and, if Lender requires, will promptly send to Lender receipts showing such payment within such time period as Lender may require. My obligation to make such payments and to provide receipts will be considered to be a promise and agreement contained in this Security Instrument, as the phrase “promises and agreements” is used in Section 9 of this Security Instrument. If I am obligated to pay Escrow Items directly, pursuant to a waiverother similar charges, and I fail sewer rents on the Property which under the law may be superior to pay the amount due for an Escrow Item, Lender may pay that amount and I will then be obligated under Section 9 of this Security Instrument as a lien on the Property. Any claim, demand or charge that is made against Property because an obligation has not been fulfilled is known as a "lien". (ii) The estimated yearly leasehold payments or ground rents on the Property (if any); (iii) The estimated yearly premium for hazard or property insurance covering the Property: (iv) The estimated yearly premium for flood insurance covering the Property (if any); (v) The estimated yearly premium for mortgage insurance (if any); and (vi) The estimated yearly amount I may be required to repay to Lender. pay Lender may revoke under Paragraph 8 below instead of the waiver as to any or all Escrow Items at any time by a notice given in accordance with Section 15 payment of this Security Instrument and, upon the revocation, I will pay to Lender all Escrow Funds, and in amounts, that are then required under this Section 3. I promise to promptly send to Lender any notices that I receive of Escrow Item amounts to be paidestimated yearly premium for mortgage insurance (if any). Lender will estimate from time to time the amount of Escrow Funds I will have to pay for Escrow Items by using existing assessments and bills and reasonable estimates of the amount I will have to pay for Escrow Items in the future, unless Applicable Law the law requires Lender to use another method for determining the amount I am to pay. The amounts that I pay to Lender may, at any time, collect and hold for Escrow Items under this Paragraph 2 will be called the "Funds". The Funds in an amount sufficient to permit Lender to apply the Escrow Funds at the time specified under RESPAare pledged as additional security for all Sums Secured. Applicable Law The law puts limits on the total amount of Escrow Funds Lender can at any time collect and hold. This total amount cannot be more than the maximum amount a lender for a "federally related mortgage loan" could require me to place in an "escrow account" under RESPAthe federal law called the "Real Estate Settlement Procedures Act of 1974", as that law may be amended from time to time. If there is another Applicable Law law that imposes a lower limit on the total amount of Escrow Funds Lender can collect and hold, Lender will be limited to the lower amount. (B) Lender's Obligation Lender will keep the Funds in a savings or banking institution which has its deposits insured by a federal agency, instrumentality, or entity, or in any Federal Home Loan Bank. If Lender is such a savings or banking institution, Lender may hold the Funds. Except as described in this Paragraph 2, Lender will use the Funds to pay the Escrow Items. Lender will give to me, without charge, an annual accounting of the Funds. That accounting must show all additions to and deductions from the Funds and the reason for each deduction. Lender may not charge me for holding or keeping the Funds, for using the Funds to pay Escrow Items, for making a yearly analysis of my payment of Funds or for receiving, verifying and totaling assessments and making a yearly analysis of my payments of Funds or fore receg assessments and bills. However, Lender may charge me for the services if Lender pays me interest on the Funds and if the law permits Lender to make such a charge. Lender also may require me to pay a one-time charge for an independent real estate tax reporting service used by Lender in connection with my loan, unless the law does not permit Lender to make such a charge. Lender will not be required to pay me any interest or earnings on the Funds unless either (i) Lender and I agree in writing, at the time I sign this Security Instrument, that Lender will pay interest on the Funds; or (ii) the law requires Lender to pay interest on the Funds.