Did anyone set up an escrow account after they closed on their house??

we bought the house a year ago and didnt set up an escrow account....we are trying to do this now before April 16th because thats when our homeowners insurance is due.......my mortgage company said the Homeowners Insurance has to be brought current what does that mean??

I thought escrow account was that your mortgage company will pay the taxes and mortgage for you and you just pay the mortgage company monthly

Re: Did anyone set up an escrow account after they closed on their house??

we had an escrow account set up at the time of we had the mortgage. the bank pays our our taxes and insurance from the money in the escrow.
have you paid the insurance??? maybe you have to pay the insurance company first and then once the escrow is set up they will do it. also piece of advice, even if you send an extra $30 to the escrow account a month do it, this will help a lot in the long run, and will keep your escrow account in a positive balance.

Re: Did anyone set up an escrow account after they closed on their house??

if you escrow the homeowners, you have to be prepaid for the year, and then have 2 months (i think) of H/O in escrow - then you can start paying monthly.


you are correct in your definition of escrow - but you have to be prepaid before you can pay monthly, so the bank has a cushion in case you default in your monthly payments. YOu'll probably have to prepay 6 mo's of real estate taxes as well.

Re: Did anyone set up an escrow account after they closed on their house??

Actually this is a great way to save money at closing. You can absolutely do this after you close. I had asked about this and caught the broker off guard...he said it is absolutely doing and will save you money (at closing).