Escrow- ooops!

The WSJ had a short article about some of the implications to the American Home's bankruptacy with regards to tax and insurance payments- and basically, if you escrowed those payments, they're not getting to the appropriate parties.

I wonder if this will encourage some rethinking of escrowing these payments. I have mused to a number of people that I bet there are some people who will essentially have a lender go out of business, and not file foreclosure, for paper work to go missing, and in a way, for you to 'own' your house without making all the payments.

But this is a bit of the reverse problem- and something that congress and state governments ought to take immediate action on.

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