what recourse do I have for escrow accounts as home owner financier?
Intermittent payments from the buyer in 2018. Do I apply funds first to the escrow account(for taxes) for missed payments, then to principal and interest, or do I suffer the loss for the months the missed payments happened as far as escrow funds go, and then roll the missed funds into the new escrow analysis for 2019? (This buyer is close to foreclosure at this point.)
It will be best to consult with a Certified Public Accounting (CPA). There are also companies that manage owner financing accounts that you may want to consider working with, your CPA can direct you to those as well. Good Luck.
How the buyer’s payments are applied depends on your contract. The contract should spell out such details. As Deborah mentioned above, talk to a good CPA. They can read your contract and figure out how it applies to this situation.
Hope this helps.
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