Assignment of Escrow Funds and Insurance

What is Assignment of Escrow Funds and Insurance

The Assignment of Escrow Funds and Insurance is for the amount received as a result of the sale of security. As per the Assignment of Escrow Funds and Insurance the funds are held in escrow so that the taxes, private mortgage insurance as well as maintenance fees are paid. The purchases as per this have rights with regards the excess funds which are held and the overages of escrow. They also have responsibility towards whatever shortages are there in escrow and they need to deposit sufficient funds in order to pay for the items.

As per the hazard insurance contract the premium is transferred as well as assigned to the purchaser. This also includes the premium which is unearned and whatever losses are to be claimed so that these are in effect and enforceable on the property.

Incase the buyer wants to change the insurance coverage or replace it, whatever refunds are made with regards the premium, these are payable to the purchaser.

This Assignment of Escrow Funds and Insurance document is both signed as well as dated by the seller and purchaser and the details of the trustee including the address and the phone number are written as well. This is usually addressed to the mortgage company and it has all the details of the loan including the name and address of the mortgagor as well as the loan details.

In this document, it specifically states that the property has been sold to the person who is a trustee.

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ASSIGNMENT OF ESCROW FUNDS AND
INTEREST IN EXISTING HAZARD INSURANCE

Mortgage Company
Address
City, State, Zip
Phone #

Re:    Loan No. *********
Mortgagor’s Name
Address
City, State, Zip

Gentlemen:

The property securing the payment of the captioned loan has been sold to ___________________,  TRUSTEE.

As part of the consideration for the sale of the security, we have agreed and do hereby agree that all funds held by you for the account of the Seller in connection with said loan or in escrow to pay taxes, maintenance fees, private mortgage insurance or insurance on the security shall hereafter belong to said undersigned purchasers; and the said undersigned purchasers shall have all rights in regard to any escrow overages or excess funds held by you and do also assume full responsibility for any escrow shortages and the sufficiency of funds on deposit in the escrow account for the payment of all such items after this date.

It is further understood and agreed that the present hazard insurance contract and premium are transferred and assigned to purchaser (including unearned premium and claims for losses thereunder) and are to remain in full force and effect on said property.  Should purchaser decide to replace the existing insurance coverage, any refund of premium shall be payable to PURCHASER.

Acknowledged and sign by the             Acknowledged and signed by the
Seller this the _____ day of                Purchaser this the _____ day of
____________, 20___.                ____________, 20___.

SELLER:                        PURCHASER:

_____________________________            _____________________________
(Name of Trustee, Trustee)
Address
Phone: