Finance
In South Carolina, what is the purpose of an 'escrow account' held by a mortgage lender?
ATo hold the seller's proceeds until title is transferred
BTo collect and pay property taxes and insurance on behalf of the borrower✓ Correct
CTo store the original deed for safekeeping
DTo accumulate equity for the borrower's next home purchase
Explanation
Lenders often require borrowers to pay into an escrow account (impound account) monthly for property taxes and homeowner's insurance. The lender then makes these payments when due, ensuring the property remains protected and taxes are paid.
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