Please Help Me Understand

Please help!!! I just need to know what it means when the mls says fha insured with escrow. confused

Comments(3)

  • dickknox25th September, 2003

    It means two things
    the US govt has a program to insure loans - managed by the Federal Housing Administration (FHA) - part of HUD. The seller has to pay some of the buyers costs - it is designed for buyers who dont have strong credit.
    Escrow can mean one of two things - either reference to having you prepay your taxes and insurance in monthly installments (probably what they mean here) or to the way a 3rd party acts as an impartial intermediary to process the details of the sale - a technique used in some states but not all.

  • MikeT101325th September, 2003

    Is this a HUD foreclosure?

    Means that it is Gov't. owned (probably a default on a FHA Loan) and their is some type of damage to the property, they offer money back to buyer for repairing, usually a minimum amount, but the got'v is giving you money, every little bit helps.

    For instance if their was a broken window, they may put 220 in escrow for you.

    Check and see what is wrong, may be Mold, Termites, Roof damage or even a broken glass window...

    MT
    [addsig]

  • iamjenni25th September, 2003

    Thankyou sooooo much. I was hoping it was something good, not bad. You were both great help. Hoping to make offer on this one real within the week.

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