Escrow & Title
What is 'escrow impound' (also called an escrow account or reserve account) in an Oregon mortgage?
AThe title company's fee for managing the closing
BAn account maintained by the lender where the borrower's property tax and insurance payments are collected monthly and paid when due✓ Correct
CThe earnest money deposit held during the inspection period
DA penalty account charged by the lender for late payments
Explanation
An escrow impound account (reserve or escrow account) is maintained by the mortgage lender to collect and hold funds for property taxes, homeowner's insurance, and sometimes flood insurance. Borrowers pay 1/12 of the annual amount monthly, and the lender pays the bills when due.
Related Oregon Escrow & Title Questions
- In Oregon, what is a 'satisfaction of mortgage' (or 'reconveyance' for a deed of trust)?
- What is a 'preliminary title report' and when in the Oregon transaction process should it be reviewed?
- What is the significance of 'recording' a deed in Oregon?
- At an Oregon real estate closing, the closing statement shows a debit to the buyer for prorated property taxes. This means:
- Under Oregon's recording statutes, which type of recording system is used?
- In Oregon, what is a 'quiet title action' and when is it used?
- In Oregon, a 'deed restriction' (also called a restrictive covenant) differs from a zoning regulation in that:
- In Oregon, a deed of trust involves three parties. Who are they?
Practice More Oregon Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Oregon Quiz →