Posted by phil fernandez on December 26, 1998 at 08:55:13:
Rich,
The bank, I’m sure qualified you for the mortgage on this house. Part of your deal involved repair funds. Banks are specific as to where the money will go and to what specific repairs are to be made. This is all part of the mortgage commitment the bank made to you and no the bank would not let you apply the funds to another real estate deal if you do not use the money for the actual repairs.
L/O - Do I need to use escrow? - Posted by Rich
Posted by Rich on December 26, 1998 at 08:07:52:
I recently purchased a 3 br home on a double lot. I negotiated an additional $30,000 (held in escrow account) to do several improvements: new kitchen, bathroom, roof, deck, and siding. If I were to lease option this property, without doing the improvements, I assume the bank will take back the escrow money. How will my mortgage payments be effected? Can I ask the bank to switch the escrow to another property? As you can probably tell, I’m new at this. Thanks to one and all. -Rich