Escrow & Title

In Missouri, 'escrow' in a mortgage typically refers to:

AThe down payment account
BFunds collected by the servicer monthly for property taxes and insurance premiums, disbursed when due✓ Correct
CThe title company's operating account
DThe seller's proceeds account

Explanation

Mortgage escrow accounts in Missouri hold monthly contributions for property taxes and insurance. The servicer collects 1/12 of annual taxes and insurance with each mortgage payment and pays these bills when due, ensuring they are paid and protecting the lender's collateral.

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